Thales half-year net income is down 58% to €37 million ($42 million), with most of the fall blamed on accounting changes. New rules on calculating pensions led to a €43 million charge. But falling civilian sales would have still pushed Thales' net income down 20% to €176 million, against €220 million for the first half last year.

However, chief executive Denis Ranque says consolidated sales and operating income should grow for the year thanks to the performance of defence activities, though growth will be "limited" by the slowdown in civilian aerospace activities.

UK aerospace supplier Cobham saw sales in the first half of 2003 rise 10% year on year to £386 million ($619 million). New US military business offset the weak commercial aircraft sector. The company boosted business by purchasing US marine antenna specialist Sea Tel for $26 million, and has also bought technology consultancy ERA Technology for £20 million.

Source: Flight International