Safran Upbeat on 2022 Targets Despite Russia Hit; 1Q Revenue Rose

By Joshua Kirby

Safran SA on Friday confirmed its guidance for the year despite the material effects of the Russia-Ukraine crisis, after revenue rose in the first quarter.

The French aerospace-industry supplier made adjusted quarterly revenue of 4.07 billion euros ($4.27 billion), a 17% increase at constant currency. Civil aftermarket sales drove growth in the propulsion segment. Air-traffic growth stalled versus the prepandemic period, notably due to a downturn in China at the end of the quarter, Safran said.

The company confirmed its guidance for the full year, including around EUR18 billion-EUR18.2 billion in adjusted revenue and a recurring operating margin of around 13%. This is despite the suspension of exports to and operations Russia following its invasion of Ukraine, which affects around 2% of total sales and will drag the margin by some 70 basis points, Safran said.

Inflation of raw materials, freight and energy as a result of the war will meanwhile drag the margin by a further 80 points, it said.

In order to offset this impact on the 2022 margin, the company will implement cost savings, commercial measures and deferral of some expenditure, it said.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

April 29, 2022 01:30 ET (05:30 GMT)

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