PARIS (Reuters) - Thales raised its annual organic sales growth target on Friday, after posting better-than-expected growth in the first half, thanks to a rebound in its civil aeronautics business and growth in its security division.

The French group reported sales for the January-June period of 8.7 billion euros, up 7.7% on a like-for-like basis.

Order intake for the first half totaled 8.6 billion euros, down 23% due to the major contract for the delivery of Rafale aircraft to the United Arab Emirates, signed this time last year.

Thales reported that order intake, excluding Rafale, remained at record levels, thanks in particular to solid demand for its ground defense radars.

The aerospace, defense and security equipment supplier also reported a rise in earnings before interest and taxes (Ebit).ts (Ebit) up 13.1% on an organic basis, to 993 million euros, with an Ebit margin of 11.4% versus +10.8% for the same period last year.

For 2023, it now expects organic sales growth of between 5% and 7%, corresponding to sales in the 17.9-18.2 billion euro range.

CMA CONCLUSIONS AWAITED

Thales CEO Patrice Caine said the Group expected the UK Competition Authority (CMA) to issue its findings in the coming weeks on the finalization of Hitachi Rail's proposed acquisition of its rail signalling business.

The Competition and Markets Authority is expected to conclude its investigation next month.

"We're making progress on it, going through the steps one by one," Patrice Caine told reporters. "The (CMA) is the next milestone. Once we have that, knowing that it's pretty clear on the (European Commission's) side, I think we'll be clear on the definitive time horizon."

Thales also expects supply chain tensions and the euro's weakness against the dollar to weigh heavily in the second half of the year.

CFO Pascal Bouchiat said that, while semiconductor supply had improved, the supply of printed circuit boards, and especially mechanical equipment, remained "very difficult".

"There are elements that are improving, and there are others that are still really under stress", he explained.

(Tim Hepher reports; Camille Raynaud, edited by Jean Terzian)