Bloomberg News

Safran’s Annual Earnings Rise 27% on Aircraft-Engine Demand

February 24, 2012

Feb. 23 (Bloomberg) -- Safran SA, Europe’s second-largest maker of aircraft engines, said full-year profit increased 27 percent as it benefited from production increases by commercial planemakers.

Profit excluding some items in 2011 rose to 644 million euros ($853 million) or 1.59 euros a share, from 508 million euros, or 1.27 euros a share, a year earlier, the company said in an e-mailed statement. That compared to 1.69 euros from 17 analysts in a Bloomberg survey.

Safran builds engines for single-aisle planes made by Airbus SAS and Boeing Co. through its CFM International venture with General Electric Co. The two biggest planemakers are boosting output to record levels as airlines worldwide expand and refresh their fleets with newer, more-efficient jets.

“In what is likely to remain an unstable environment, we are confident we are on track for further solid earnings growth in 2012,” the Paris-based company said in the statement.

Sales rose 9.1 percent to 11.74 billion euros. Analysts in a Bloomberg survey had estimated 11.77 billion euros. Safran predicted a 10 percent increase in revenue this year and a 20 percent jump in recurring operating income, which in 2011 rose 35 percent to 1.19 billion euros.

The backlog rose to 43 billion euros. CFM’s new Leap engines, which will power Airbus’s A320neo, Boeing Co.’s 737 MAX and Commercial Aircraft Corp. of China’s C919, recorded more than 3,000 orders, Safran said. Airbus’s A320neo is set for first deliveries in late 2015. The Boeing plane will enter service in 2017 and Comac has said its C919 will begin service in 2016.

Safran said it will ask shareholders to approve an increase in the dividend to 62 cents a share, from 50 cents, at the company’s annual meeting May 31.

Results are adjusted for the effect of re-evaluating currency hedges and purchase-price allocations, as well as accounting for assets and liabilities in acquisitions, the company said.

--Editors: Niamh Ring, Stephen West

To contact the reporter on this story: Andrea Rothman in Paris at aerothman@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net


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