 Thales is a major player in the UK defence market |
French defence giant Thales has posted a 58% slump in net profits - hit by restructuring costs and charges linked to its British pension scheme. First-half net profit fell to 37m euros ($41.4m;�25.9m), from 88m euros the previous year.
Restructuring costs and other operating expenses more than doubled to 78m euros, Thales said. UK pension-related charges totalled 43m euros.
Although based in France, Thales has major operations in Britain.
However, the company lost out to UK rival BAE Systems, earlier this year, in the bid to take the lead role in building two new aircraft carriers for Britain's Royal Navy.
Mixed outlook
Thales said it expected to take more pension-related charges in its second half, roughly equal to the amount booked in the first six months.
Growth is also expected to remain limited because of "the unfavourable economic environment for parts of the civil businesses", the firm said.
However, Thales said its more robust defence-related businesses would enable it to post a small rise in full-year revenues and operating profits.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 