PARIS (Reuters) – Safran reported on Thursday a sharp increase in its turnover and current operating profit in 2023, and said it expected further growth this year, driven by strong demand for engine service activities.

The aeronautical equipment manufacturer indicated that its current operating profit had increased in 2023 by 27.2% on an organic basis to 3.17 billion euros, while its turnover had increased by 23.6% on an organic basis to 23.20 billion euros.

Safran said its civil engine services business grew 32.9% in dollar terms.

With General Electric, Safran co-produces LEAP engines for all Boeing and more than half of Airbus narrow-body aircraft through their company CFM International.

The group’s chief executive, Olivier Andriès, told reporters that restrictions imposed on Boeing by US regulators could affect deliveries of LEAP-1B engines.

The accident of an Alaska Airlines Boeing 737 MAX 9 aircraft in January prompted the American Civil Aviation Authority (FAA) to prohibit the company from increasing its production.

Olivier Andriès ruled out the possibility of switching from the Boeing version of the LEAP to the Airbus version, known as the LEAP-1A, in 2024 or in the near term, and said Airbus had not made a request in this regard. sense.

However, he did not rule out the possibility that CFM International would study the capacity requirements of both versions for 2025 and beyond.

LEAP deliveries increased by 38% in 2023, slightly below the objective set by the group.

Safran’s chief executive also said he expected Boeing to wait for the results of FAA inspections at its factories before making decisions on suppliers’ production rates, adding that the U.S. planemaker would not has not yet made any changes to the suppliers’ schedule.

Olivier Andriès indicated that Safran was in discussions with the Italian government after Rome’s recent decision to oppose the sale of Microtecnica, the company bringing together the assets of Collins Aerospace located in Italy, for an amount of 1.8 billion euros.

The President of the Italian Council, Giorgia Meloni, explained that the decision was taken because Safran’s plan to acquire the flight controls and actuation activities of Collins Aerospace could have threatened supplies to the Italian army.

Safran and Collins Aerospace both challenged Italy’s decision in January, and Safran confirmed certain commitments to the government, Olivier Andriès said, adding that dialogue was privileged.

(Reporting by Tim Hepher; by Camille Raynaud, editing by Kate Entringer)

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