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French naval contractor DCNS reports orders down, margins up in 2016
February 24, 2017 / 6:30 AM / in 9 months

French naval contractor DCNS reports orders down, margins up in 2016

PARIS, Feb 24 (Reuters) - French naval contractor DCNS posted a 25 percent drop in new orders to 2.645 billion euros ($2.80 billion) for 2016, as revenues edged up to 3.191 billion from 3.039 billion euros.

The order intake for 2016 barely includes any contribution from a lucrative deal to build new submarines for Australia, signed in December, Finance Director Frank Le Rebeller said.

That must wait until a contract for the design of the submarines, which is expected by the end of 2017, he said.

DCNS is 62 percent owned by the French state and 35 percent by French defence electronics group Thales SA.

Earnings before interest, tax and amortisation and net profits each rose by about 50 percent to 89.5 billion euros and 87.5 billion respectively.

The gross operating margin jumped to 2.8 percent from 1.9 percent after cost reductions on the Barracuda submarine.

For 2017, DCNS predicts unspecified growth in revenues, gross earnings and margins. It also expects a 10 percent improvement in net profit. ($1 = 0.9458 euros) (Reporting by Cyril Altmeyer, Tim Hepher; Editing by Lisa Shumaker)

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