France's Safran raises forecasts amid air travel boom
Reuters
Published Jul 27, 2023 06:09
PARIS (Reuters) - Jet engine maker Safran (EPA:SAF) raised profit and cashflow forecasts on Thursday after core income jumped in the first half, led by demand for spares and services as airlines boost flights to meet a recovery in travel demand.
Recurring operating income rose 33% to 1.397 billion euros ($1.55 billion) and revenues rose 26% to 10.945 billion on a like-for-like basis in the first six months, the French aerospace supplier said. Safran generated almost 1.5 billion euros of free cashflow.
The Paris-based group said it was now targeting full-year recurring operating income of 3.1 billion euros versus 3.0 billion previously, and 2.7 billion euros in free cashflow compared with a previous target of 2.5 billion.
Safran also said it was launching a 1-billion-euro share buyback to be completed by the end of 2025.
Its widely watched civil aftermarket revenues rose 36.5% in dollar terms, driven by strong parts sales for the CFM56, the previous generation of narrow-body jet engines that Safran co-produces with GE through their joint venture CFM.
Deliveries of the current-generation LEAP engines, used on all Boeing (NYSE:BA) 737 MAX jets and about half of Airbus's A320neo fleet, rose 69% to 785 units.
GE earlier this week raised its full-year profit outlook on robust demand for jet engine spare parts and services from airlines looking to cash in on surging air travel.
($1 = 0.9008 euros)
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Written By: Reuters
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