Safran Books Higher Quarterly Revenue, Raises 2021 Free Cash Flow Target
October 29 2021 - 1:39AM
Dow Jones News
By Olivia Bugault
Safran SA raised its cash flow outlook for the year while
maintaining its sales and profitability targets after booking
higher revenue in its third quarter.
The French aerospace company said Friday that it now expects to
generate more than 1.5 billion euros ($1.74 billion) in free cash
flow this year, compared with a previous guidance of above 2020
levels. Last year, Safran generated EUR1.07 billion in free cash
flow. The company said it upgraded its target thanks in part to new
advance payments on Rafale export contracts.
The company backed its other targets with its adjusted revenue
expected to fall organically in the low single digits, while its
2021 adjusted recurring operating margin should increase by more
than 100 basis points compared with its 10.2% margin in 2020.
"Safran's third-quarter revenue confirms that the recovery is
gaining strength month after month, which makes us optimistic for
the future," Chief Executive Olivier Andries said.
In its third quarter, adjusted revenue--which it says better
reflects its performance and allows comparisons--was EUR3.73
billion, up 10.4% thanks to recovery in all its activities. Its
aerospace propulsion division performed the best with 16% growth in
revenue for the period as civil aftermarket activities rebounded
strongly.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
October 29, 2021 01:24 ET (05:24 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Safran (EU:SAF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Safran (EU:SAF)
Historical Stock Chart
From Apr 2023 to Apr 2024