Safran Books Higher Quarterly Revenue, Raises 2021 Free Cash Flow Target

   By Olivia Bugault 
 

Safran SA raised its cash flow outlook for the year while maintaining its sales and profitability targets after booking higher revenue in its third quarter.

The French aerospace company said Friday that it now expects to generate more than 1.5 billion euros ($1.74 billion) in free cash flow this year, compared with a previous guidance of above 2020 levels. Last year, Safran generated EUR1.07 billion in free cash flow. The company said it upgraded its target thanks in part to new advance payments on Rafale export contracts.

The company backed its other targets with its adjusted revenue expected to fall organically in the low single digits, while its 2021 adjusted recurring operating margin should increase by more than 100 basis points compared with its 10.2% margin in 2020.

"Safran's third-quarter revenue confirms that the recovery is gaining strength month after month, which makes us optimistic for the future," Chief Executive Olivier Andries said.

In its third quarter, adjusted revenue--which it says better reflects its performance and allows comparisons--was EUR3.73 billion, up 10.4% thanks to recovery in all its activities. Its aerospace propulsion division performed the best with 16% growth in revenue for the period as civil aftermarket activities rebounded strongly.

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

October 29, 2021 01:24 ET (05:24 GMT)

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