PARIS (Reuters) – France’s Safran kept its 2023 financial outlook unchanged as it reported sharp growth in quarterly revenues, buoyed by a swift recovery in air traffic demand.
Safran, which provides engines for Boeing and Airbus narrow-body jets through its CFM International joint venture with General Electric, said first-quarter revenues rose 24.7% on an organic basis to 5.266 billion euros ($5.78 billion).
Core propulsion revenues rose by 34.9%, on an organic basis, to 2.714 billion euros, the company said on Wednesday.
Safran reaffirmed its 2023 full-year financial outlook, namely for revenues of at least 23 billion euros, recurring operating income of around 3 billion euros and a free cash flow of at least 2.5 billion euros.
Safran said its main risk factor remained supply chain production capabilities.
“We are committed to meeting our customer commitments and remain both vigilant and fully confident in our efforts to offset inflation and to deliver our financial performance for the year,” said Safran CEO Olivier Andries.
The widely watched civil aftermarket, or repairs and services for jet engines, grew 38.1% in dollar terms.
Air traffic is rebounding strongly following the pandemic, with key medium-haul or domestic markets already exceeding pre-COVID levels and long-haul traffic making up lost ground.
The engine industry and other parts of the aerospace supply chain have, however, been hit by labour and parts shortages.
($1 = 0.9112 euros)
(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta)
