Safran Targets Year of Growth After Revenue Fell in 2021
February 24 2022 - 1:41AM
Dow Jones News
By Olivia Bugault
Safran SA said Thursday that it is targeting higher revenue and
an improved operating margin this year as it expects narrrowbody
traffic to keep recovering, after it posted lower revenue and net
profit in 2021.
The French aircraft engine manufacturer targets revenue on an
adjusted basis--which it says better reflects its performance and
allows comparisons-- in the range of 18 billion to 18.2 billion
euros ($20.38 billion-$20.61 billion) for the year. Safran booked
EUR15.26 billion in adjusted revenue in 2021, a 5.4% organic
decline year-on-year.
For 2022, it also expects its adjusted recurring operating
margin to reach around 13%, up from 11.8% in 2021, while generating
free cash flow of about EUR2 billion.
Safran built its guidance on several assumptions including
higher deliveries of LEAP jet engines, increasing narrowbody
traffic, and up to a 30% rise in revenue in civil aftermarket. Last
year, 845 LEAP engines were delivered.
Adjusted net profit for 2021 came in at EUR760 million from
EUR844 million the year prior, while adjusted recurring operating
income rose 7.1% to EUR1.81 billion, it said.
The company will pay a dividend of EUR0.50 a share, it said.
"Safran is well placed to benefit from the positive trends in
both aftermarket and original equipment as narrowbody traffic
returns to pre-crisis levels by end 2022," Chief Executive Officer
Olivier Andries said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
February 24, 2022 01:26 ET (06:26 GMT)
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