Safran Backs Guidance After Revenue Boost

   By Mauro Orru

Safran confirmed its forecasts for the year after revenue jumped in the third quarter as air traffic for narrowbody jets translated into strong demand for spare parts.

The French aerospace-industry supplier on Friday posted adjusted revenue of 5.83 billion euros ($6.16 billion), up 20% in reported terms and 26% organically.

Adjusted revenue at Safran's propulsion business climbed 23% in reported terms to EUR3.08 billion, while the equipment and defense segment saw a 17% increase to EUR2.13 billion. The aircraft interiors business contributed EUR605 million, up 16% on year.

"Safran continues to enjoy strong market tailwinds with narrowbody air traffic now trending well above pre-crisis level resulting in a strong demand for CFM56 spare parts," Chief Executive Olivier Andries said. "Our priority remains to ramp-up production while we still operate in a constrained supply chain environment."

For the year, Safran continues to expect adjusted revenue of at least EUR23 billion, adjusted recurring operating income of roughly EUR3.1 billion, and free cash flow of at least EUR2.7 billion.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

October 27, 2023 01:23 ET (05:23 GMT)

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