Safran Issues 2021 Outlook, Warns of Uncertainty After 2020 Profit, Revenue Fall
February 25 2021 - 2:09AM
Dow Jones News
By Olivia Bugault
Safran SA said Thursday that adjusted profit and revenue dropped
sharply last year on the back of the coronavirus pandemic, and
issued guidance for 2021.
The French aerospace-and-defense company booked adjusted net
profit of 844 million euros ($1.03 billion) compared with EUR2.67
billion the year prior. Adjusted revenue fell 32.5% organically to
EUR16.5 billion.
Safran said activities in its fourth quarter were less affected
by what it called the greatest crisis in the history of the
aerospace industry than during the previous quarter.
Its 2020 operating margin was at 10.2% of sales, in line with
the company's forecast.
"The recent slowing of air traffic recovery in several regions
of the world generates uncertainty, notably with a risk of delayed
recovery of civil aftermarket," the company said about the year
ahead.
Safran expects adjusted revenue to fall organically in the low
single digits, while its 2021 adjusted recurring operating margin
should strongly improve compared with the last six months of
2020.
Safran, which manufactures aircraft engines, based its 2021
outlook on several assumptions including the delivery of more than
800 LEAP engines this year.
The company will propose a dividend of EUR0.43 a share for 2020,
it said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
February 25, 2021 01:54 ET (06:54 GMT)
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