Safran Hikes Dividend After Jump in 2022 Revenue, Operating Profit

By Mauro Orru

Safran SA is raising its dividend after posting higher revenue and operating profit for 2022, a year buoyed by the recovery in air traffic.

The French aerospace-industry supplier on Friday posted adjusted revenue of 19.04 billion euros ($20.32 billion), up 25% on year in reported terms and up 16% organically.

Adjusted recurring operating income, a closely watched metric that excludes items such as capital gains or impairments, came in at EUR2.41 billion, up 33% in reported terms and up 28% organically.

Free cash flow climbed to EUR2.67 billion from EUR1.68 billion.

Safran said it would propose a EUR1.35 per share dividend for 2022, above the EUR0.50 a share it paid for the previous year.

"While we expect industry-wide challenges to continue near-term, 2023 is set to be a strong year for customer demand," Chief Executive Olivier Andries said.

"We expect continuing positive trends in global air traffic with China reopening gradually, a good catalyst for our aftermarket businesses at a time when airlines are catching up on maintenance."

Safran is targeting adjusted revenue of at least EUR23 billion this year, 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

February 17, 2023 01:24 ET (06:24 GMT)

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