Safran (SAF.PA) announced strong quarterly sales and maintained its 2023 financial guidance as air traffic demand recovered.
Through its CFM International joint venture with General Electric (GE.N), Safran produces engines for Boeing (BA.N) and Airbus (AIR.PA) narrow-body planes. First-quarter revenues climbed 24.7% organically to 5.266 billion euros ($5.78 billion).
The business reported Wednesday that core propulsion revenues climbed 34.9% organically to 2.714 billion euros.
Safran reiterated its 2023 full-year financial estimate of at least 23 billion euros in sales, 3 billion euros in recurring operating income, and 2.5 billion euros in free cash flow.
Safran’s biggest risk was supply chain production.
“We are committed to meeting our customer commitments and remain both vigilant and fully confident in our efforts to offset inflation and deliver our financial performance for the year,” said Safran CEO Olivier Andries.
The civil aftermarket—jet engine maintenance and services—grew 38.1% in dollars.
Key medium-haul or local markets have already exceeded pre-COVID levels, and long-haul traffic is recovering.
However, labor and component shortages have plagued the aerospace supply chain and engine business.
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