PARIS (Reuters) – Safran revised its outlook for 2024 on Friday, lowering its revenue target but raising its current operating profit target in the face of the expected drop in its LEAP engine deliveries.
The group said it expected a drop of around 10% in deliveries of its LEAP engines, co-produced with General Electric, whereas it previously anticipated deliveries in the 0%-5% range.
“Original equipment deliveries intended for short and medium-haul aircraft have been limited by bottlenecks at certain suppliers,” said Safran CEO Olivier Andriès, quoted in a press release.
Consequently, Safran has decided to lower its turnover target for 2024 to around 27.1 billion euros, compared to 27.4 billion euros previously.
The company, however, raised its forecast for annual current operating profit to around 4.1 billion euros, citing a “solid performance” achieved over the first nine months of the year. Safran previously anticipated annual current operating income close to 4.0 billion euros.
Safran further estimates that the new tax measures planned by the French government, which intends to temporarily increase the corporate tax rate, could cost the group between 320 million and 340 million euros for 2024.
Over the first nine months of the year, Safran reported adjusted sales of 19.686 billion euros, up 17.4%, driven in particular by after-sales activities for aeronautical engines and equipment.
For the third quarter alone, turnover reached 6.639 billion, up 14% year-on-year.
(Written by Tim Hepher; Camille Raynaud, edited by Blandine Hénault)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
