Safran Confirms Guidance as Earnings Supported by Aftermarket Activities

By Pierre Bertrand

Safran confirmed it guidance for the year after earnings rose as aftermarket activities supported performance in the first half of the year.

The French aerospace-industry supplier said it made 1.43 billion euros ($1.55 billion) in adjusted net profit for the period, compared with EUR1.04 billion a year ago, on adjusted revenue that grew 19% to EUR13.05 billion.

Its adjusted recurring operating income, a closely watched metric that excludes items such as capital gains or impairments, totaled EUR1.97 billion in the period, rising 41%.

The result was driven mainly by the growth in engines and aircraft equipment aftermarket activities, Chief Executive Olivier Andries said, adding that the company's aircraft interiors activities business also improved and achieved operational break-even.

Aircraft interiors adjusted revenue grew by around 27%, though the business remained below its 2019 prepandemic level.

"We are very confident in our ability to achieve our 2024 financial guidance, particularly for the operating result, with some pressure on cash flow notably related to the timing of advance payments," Andries said.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

July 31, 2024 01:14 ET (05:14 GMT)

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