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Thomson back in the black
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March 15, 2000: 5:35 a.m. ET
Earnings rebound as defense, telecom activities beat expectations
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LONDON (CNNfn) - Thomson-CSF on Wednesday unveiled better-than-expected full-year earnings for 1999 as the benefits of the defense contractor's diversification into civil electronics began to bear fruit.
Thomson, Europe's largest defense electronics company, posted net income of 275 million euros ($266 million), bouncing back from a 232 million-euro loss in 1998 as restructuring charges dropped to 70 million euros from 314 million. According to Reuters, analysts had predicted net income would rise to 260 million euros.
Investors had been primed for strong earnings following an optimistic presentation to investors last month. Thomson (PHO) stock rose only mildly to 48.66 euros in early Paris trading. The stock has risen some 50 percent so far this year.
In an upbeat assessment of the outlook for 2000, Thomson predicted continuing growth in orders, after a 15 percent increase to 15.4 billion euros in 1999.
 Earnings per share for 1999 were 1.65 euros, compared with a loss of 1.60 euros per share in 1998.
Operating profit rose 10 percent to 390 million euros. The defense business generated operating profit of 243 million euros, aerospace chipped in 48 million and the rest came from civil telecom businesses.
Revenue rose 12 percent to 6,9 billion euros, as previously reported in early February. 
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Thomson-CSF
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