Thales Turns in FY05 Results, Prepares to Make Acquisitions

French defense electronics group Thales announced a modest 2.5% rise in net profit for 2005 to EUR 334 million, while announcing plans to go on the offensive in foreign markets with a EUR 1 billion ($1.19 billion at current conversion) fund for acquisitions. In its news release, Thales noted that its “ambition, as compared to its current position, is to achieve, by 2008, a 25 percent growth in revenues, 15 percent from organic growth and the remainder through acquisitions”. The firm may already have begun. In December, DID covered Thales’ deal with French state-owned naval shipyards DCN, giving it a 25% stake in the company (note that Thales is itself 31.3% owned by the French state). The company also revealed its intention to buy the 50% of Australia’s ADI recently, conditional on the approval of Australia’s Foreign Investment Review Board (see ADI release, PDF format). This would complete its takeover of Australia’s largest military manufacturer, and extend the firm’s drive to expand its Pacific Rim operations and sales.