Investor Alert

Oct. 22, 2020, 1:54 a.m. EDT

Thales backs 2020 guidance as revenue falls

By Olivia Bugault

Thales SA backed its 2020 guidance on Thursday after reporting falling revenue in its third quarter as the coronavirus pandemic continues to hurt the company's civil aeronautics business.

The French aerospace-and-defense company posted revenue for the period of 3.96 billion euros ($4.68 billion) compared with EUR4.22 billion the prior year. Organically, sales fell by 4.3%, compared with a 19.9% drop in the second quarter when its activities were heavily disrupted by the pandemic.

The decline was driven by a roughly 45% fall in sales in its civil aeronautics business. Excluding aeronautics, sales were up 1.5% organically, it said.

Order intake fell to EUR3.09 billion from EUR3.45 billion.

Thales backed its guidance for the year, including sales between EUR16.5 billion to EUR17.2 billion.

"The public health and macro-economic context remains uncertain and could affect the pace of recovery of air traffic and corporate investment plans, particularly in cybersecurity and the Internet of Things," it said.

Write to Olivia Bugault at olivia.bugault@wsj.com

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