Thales down on space biz margin worries
** Thales TCFP.PA shares fall 5%after the defence electronics company posts weak margins in its space business and cuts outlook for the segment, even as it beats forecasts for groupnew orders and EBIT
** Thales says EBIT margin in the space segment was negative due to the lack of growth in the business and R&D costs
** FY EBIT margin in the unit will be negative, Thales says, due to falling demand for commercial telecom activities
** Sources have said that Thales and Airbus AIR.PA are talking to combine some space activities to better compete with U.S giants
** "The Aerospace margin surprised to the downside given well-flagged challenges in the space segment, although encouragingly this underperformance was offset elsewhere in the group," says Berenberg
** New orders signed in H1 jump 26% to 10.77 bln euros and beat expectations, helped by demand for military gear, while H1 EBIT of 1.10 bln slightly ahead of consensus
** Shares head for their worst day in more than one month
($1 = 0.9192 euros)
Reporting by Olivier Sorgho and Pauline Foret
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