Safran Backs Guidance After 1Q Revenue Boosted by Narrowbody Traffic

By Mauro Orru

Safran SA confirmed its forecasts for the year after first-quarter revenue jumped as narrowbody traffic returned to prepandemic levels and airlines ramp up capacity ahead of the summer season.

The French aerospace-industry supplier on Wednesday posted adjusted revenue of 5.27 billion euros ($5.78 billion), up 29% in reported terms and up 25% organically.

Adjusted revenue at Safran's propulsion business climbed 40% in reported terms to EUR2.71 billion, while the equipment and defense segment posted a 15% increase to EUR1.97 billion. The aircraft interiors business contributed EUR584 million, up 43% from last year's first quarter.

The rebound in Chinese domestic air traffic helped lift global narrowbody capacity back to prepandemic levels, Safran said.

"Our deliveries of LEAP engines have stepped up as planned, an encouraging performance in a context of persistent difficulties in the global supply chain," Chief Executive Olivier Andries said.

For the year, Safran continues to expect adjusted revenue of at least EUR23 billion, with adjusted recurring operating income of roughly EUR3 billion and free cash flow of at least EUR2.5 billion.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

April 26, 2023 01:22 ET (05:22 GMT)

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