Safran shares are higher Thursday, as the aerospace parts supplier reported a stronger-than-expected first half update. The French firm also raised its full-year forecast following that brighter financial news, amid a period of unprecedented demand for aviation and aerospace parts and services.
By 1230 BST, Safran shares were 8.02% higher at €117.85. After a steady period, the stock lost some ground earlier this week.
Safran H1 earnings
French aerospace and defence firm Safran said earlier Thursday, that its underlying profit rose 20.3% to €1.386 billion. Meanwhile, its H1 revenues increased 10.1% from a year earlier, to €9.5 billion.
One of the world’s largest aeroplane parts suppliers also reported that its after care services sector, was 12.5% higher than in H1 2017.
Following that strong H1 performance, Safran raised its full-year guidance. The business now expects growth of 20% in 2018 compared with 2017, and revenue growth of 9%. It had previously expected full year growth of 10% and revenues growth of around 2-4%.
“During the first half of 2018, our performance was very strong with significant growth across all Safran businesses. We are expecting this good overall performance for Propulsion, Aircraft Equipment and Defense to continue and therefore we raise significantly our full year guidance,” Safrans’ CEO Philippe Petitcolin said.
“In addition, the integration plan of Zodiac Aerospace is being implemented and will progressively deliver the expected results. On the operational front, the ramp-up of LEAP production is proceeding and our objective remains to deliver around 1100 LEAP engines at the end of this year,” he added.
Safran reaches settlement with Dassault
Separately, Safran and Dassault aviation have signed an amicable settlement amid a dispute over the planned Slivercrest engine for Dassault’s Falcon 5X model.
The Silvercrest engine contract has now been terminated and Safran has agreed to pay €280 million compensation to Dassault. In addition, the two parties have also signed new contracts for Safran to supply equipment for the new Falcon 6X model.