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Thales Lifts FY19 EBIT, Order Intake View On Gemalto Integration; Stock Up

Shares of Thales (THLEF.PK) were gaining around 2 percent in the early morning trading in Paris after the French technology company lifted its forecast for fiscal 2019 EBIT and order intake.

The forecast update reflected the integration of Gemalto and the disposal of its General Purpose Hardware Security Module or GP HSM business.

For fiscal 2019, the company now expects EBIT between 1.98 billion euros and 2 billion euros, and order intake slightly above 18 billion euros.

Thales previously expected EBIT in a range of 1.78 billion euros and 1.80 billion euros, up 6 percent to 7 percent compared to 2018, and order intake around 16 billion euros.

Further, the company continues to expect organic sales to grow between 3 percent and 4 percent.

Patrice Caine, Chairman and Chief Executive Officer, said, "The solid momentum in growth businesses, combined with strict cost control in the more mature businesses, should result in a significant underlying EBIT increase in the 'Digital Identity and Security' operating segment, which hosts Gemalto."

The company also said its detailed action plans would help to generate 120 million euros of run-rate cost synergies.

In Paris, Thales shares were trading at 107.40 euros, up 2.29 percent.

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