Safran Targets Year of Growth After Revenue Fell in 2021

   By Olivia Bugault 
 

Safran SA said Thursday that it is targeting higher revenue and an improved operating margin this year as it expects narrrowbody traffic to keep recovering, after it posted lower revenue and net profit in 2021.

The French aircraft engine manufacturer targets revenue on an adjusted basis--which it says better reflects its performance and allows comparisons-- in the range of 18 billion to 18.2 billion euros ($20.38 billion-$20.61 billion) for the year. Safran booked EUR15.26 billion in adjusted revenue in 2021, a 5.4% organic decline year-on-year.

For 2022, it also expects its adjusted recurring operating margin to reach around 13%, up from 11.8% in 2021, while generating free cash flow of about EUR2 billion.

Safran built its guidance on several assumptions including higher deliveries of LEAP jet engines, increasing narrowbody traffic, and up to a 30% rise in revenue in civil aftermarket. Last year, 845 LEAP engines were delivered.

Adjusted net profit for 2021 came in at EUR760 million from EUR844 million the year prior, while adjusted recurring operating income rose 7.1% to EUR1.81 billion, it said.

The company will pay a dividend of EUR0.50 a share, it said.

"Safran is well placed to benefit from the positive trends in both aftermarket and original equipment as narrowbody traffic returns to pre-crisis levels by end 2022," Chief Executive Officer Olivier Andries said.

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

February 24, 2022 01:26 ET (06:26 GMT)

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