Safran reports stronger sales, lower profit
With the CFM56-LEAP transition in full swing, Safran reported a 17% decline in adjusted net profit for FY2018, at just under €2bn, on sales of €21bn (+10.4% on an organic basis).
Safran reported a 17% decline in adjusted net profit for FY2018, at just under €2bn, on sales of €21bn (+10.4% on an organic basis). The sales figure includes a ten-month contribution of €3.8bn from Zodiac Aerospace.
Adjusted net profit for FY2017 included €830m of net profit from disposal gains.
Adjusted recurring operating income was just over €3bn (14.4% of sales), an increase of 37.9% on a reported basis compared to FY 2017. FY 2018 adjusted recurring operating income included a ten-month contribution from Zodiac Aerospace of €290m. Excluding Zodiac Aerospace, adjusted recurring operating income grew 24.7%.
On the CFM56/LEAP transition, Safran reported a 13.6% increase in combined deliveries of LEAP and CFM56, to 2,162 units. The LEAP recorded 3,211 orders and commitments in 2018, bringing the total backlog to 15,620 engines on 31st December 2018.
A total of 1,118 LEAP engines were delivered in 2018 compared with 459 units in the year ago period. CFM International expects to deliver more than 1,800 LEAP in 2019. CFM56 deliveries continued to wind down — 1,044 units in 2018 vs. 1,444 in FY 2017.
For FY 2019 Safran expects 7-9% growth in sales (at an estimated average spot rate of $1.18 to the Euro), including the two additional months of contribution from Aerosystems and Aircraft Interiors (former Zodiac Aerospace activities). Adjusted recurring operating income is expected to grow in the low teens.