Safran outperforms in 2017
All targets set for 2017 were met or exceeded, as engine deliveries rose to record levels and margins in equipment and defence activities exceeded expectations.
Safran reported a 45.4% increase in adjusted net profit in 2017 (€2.6bn) as adjusted revenue rose 4.7% (7.4% on an organic basis), to €16.521bn. Adjusted recurring operating profit grew 2.7%, to €2.5bn, for an adjusted recurring operating margin of 15.0%.
CEO Philippe Petitcolin declared that all targets set for 2017 were met or exceeded, as engine deliveries rose to record levels and margins in equipment and defence activities exceeded expectations.
The group completed a major strategic reshaping during the year, as it finalised the sale of its security activities and concluded the offer for Zodiac Aerospace, making Safran the second largest aircraft equipment supplier on a global scale.
Combined shipments of CFM engines reached a record level of 1,903 units in 2017, compared with 1,770 in 2016. The company booked orders and commitments for 2,870 Leap and 474 CFM56 engines. The combined backlog for the two engine programmes amounts to 14,834 engines. Revenue was €9.7bn (+3.7%).
Other highlights included Qatar's order for an additional 12 Rafale fighters, for which Safran supplies M88 engines, power transmission, landing gear, wheels and carbon brakes, inertial navigation, wiring and other systems, as well as being prime contractor for the AASM weapon system.
The Aircraft Equipment segment reported revenue of €5.4bn (+5.2%). On an organic basis, revenue was up 6.5%. Equipment OE sales increased by 4.4%. Recurring operating income jumped 20.3%, to €682.
Defence revenue rose 8.6%, to €1.3bn, with strong increases in guidance systems, drones and sighting systems.
For the year ahead, Safran expects adjusted revenue to grow on an organic basis in the range 2% to 4%. At an estimated average spot rate of $1.23 to the euro in 2018, adjusted revenue is expected to be flat.