CHRISTINA MACKENZIE / PARIS
Thales is likely to concentrate on improving its balance sheet rather than seeking acquisitions during what it will predicts will be "extremely difficult" years ahead. Chief operating officer John Hughes says the company will concentrate on core businesses rather than looking for major expansion in North America. "If the opportunity were to come along [to make an acquisition] we'd take a look, although we are not in a feeding frenzy," he says.
Hughes, who also heads the aerospace business area, adds that this does not rule out organic growth of existing divisions. "Our organic activities will continue to grow," he says, notably in North America. "We have a very good, long-term relationship with Bombardier following investments in Quebec, so that we could be close to them," and he hints that similar action could be taken to develop a better relationship with Boeing.
"We are delighted by our relationship with Airbus," says Hughes, "but we'd like to do more business with Boeing so it's not unreasonable to suppose we'll do things to achieve this."
Thales' debt appeared worryingly large in 2002 after it added €332 million ($350 million) net debt in the first half of the year, including €110 million in acquisitions, bringing total net debt to €1.8 billion on 30 June. Since then, the company has sold four business groups including aeronautical services. After analysts expressed concern last month that the company was still debt-heavy, it also sold property worth c206 million.
Source: Flight International
