PARIS (Reuters) – Safran reaffirmed its outlook for 2023 on Wednesday and reported a sharp increase in its sales in the first quarter, thanks in particular to the recovery in air traffic.
The French aeronautical equipment manufacturer indicated that its turnover increased by 24.7% on an organic basis to 5.266 billion euros in the first quarter.
The turnover of its Propulsion activity amounted to 2.714 billion euros over the first three months of the year, up 34.9%, driven by the strong activity of services for civil engines.
The aviation sector’s rapid recovery from the pandemic boosted earnings for engine makers as supply chain disruptions forced airlines to use older planes, boosting demand for aftermarket services.
Safran, which notably produces engines for Boeing and Airbus through its joint venture with General Motors, CFM International, also reaffirmed its outlook for the 2023 financial year.
The group announced in February that it anticipates current operating profit of around 3 billion euros and sales of at least 23 billion euros in 2023.
Safran, however, stressed that the main risk factor remained the production capacities of the supply chain.
“We are determined to deliver on our commitments to our customers and remain both vigilant and fully confident in our efforts to offset inflation and deliver our financial performance for the year,” Safran Chief Executive Olivier Andriès said. in a press release.
(Tim Hepher report, written by Sudip Kar Gupta; Camille Raynaud, edited by Blandine Hénault)
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