Safran posts first-quarter 2015 adjusted revenue growth of 14.3%

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By admin April 23, 2015 16:52

Safran posts first-quarter 2015 adjusted revenue growth of 14.3%

Safran has reported first-quarter 2015 adjusted revenue growth of 14.3% (2.4% organic) mostly driven by Aerospace services and Security activities.

First-quarter 2015 adjusted revenue was up 14.3% to €3.935bn, which includes significant positive currency impacts mainly due to the considerable strengthening of the US dollar. The average USD/EUR spot rate in Q1 2015 was 1.13 compared with 1.37 a year ago. Adjusted revenue growth was 3.4% at constant currency or 2.4% on an organic basis, driven by continued momentum in Aerospace services and Security activities.

The civil aftermarket grew 17.8% in US dollar terms, and continues to be driven by first overhauls of recent CFM56 and GE90 engines.

Confirming its full-year 2015 outlook, Safran states that it expects adjusted revenue to increase by a percentage in the high-single digits and adjusted recurring operating income to grow yet again significantly in low double digits compared to 2014.

“In the first quarter, Safran’s growth is principally driven by the continuing momentum of service activities across our propulsion businesses,” says Chairman and CEO Jean-Paul Herteman. “Commercial aviation traffic continues to increase, driving our civil aftermarket revenues and our helicopter support activities have returned to growth.”
First-quarter 2015 revenue for Aircraft Propulsion was €2,070 million, a 13.4% increase (3.7% on an organic basis) compared to revenue in the year-ago period of €1,825 million. Overall service revenue in Aerospace Propulsion grew by 25.6% in Euro terms and represents a 56% share of revenue in the quarter. Civil aftermarket revenue grew by 17.8% in USD terms, and continues to be driven by first overhauls of recent CFM56 and GE90 engines. Helicopter turbines aftermarket and military engines aftermarket also grew at healthy rates.

Some 402 CFM56 engines were delivered in Q1 2015, the same number as in Q1 2014. Total new firm orders and commitments for CFM56 and LEAP were received for over 700 engines in the first quarter. At March 31, 2015 the total backlog for these engines stood at above 13,200 units and notably contains orders and commitments for more than 8,900 next-generation LEAP engines.

Revenue of the helicopter turbine businesses grew slightly as growth of support activities more than offset a slight decline in new engine shipments, impacted by the temporary effects of production delays and soft OE demand.

For aircraft equipment, first-quarter 2015 revenue of €1,172 million increased 15.4% compared to €1,016 million in the year-ago period. Service revenue grew by 19.0%, including the effect of the stronger US dollar, and accounts for 27.3% of total sales. On an organic basis, revenue was stable.

Shipments for the 787 programme, which had driven strong OE growth throughout 2014, were broadly flat as Boeing’s assembly rates plateaued in Q1 2015. Deliveries of wiring shipsets and landing gear to Airbus for the A350 programme compared favourably to the level of a year ago, accelerating from a very low base. Lower deliveries of large nacelles drove a decline in OE revenues at that business. Shipments of A320 thrust reversers should catch up over the course of the year.

Growth in services was driven by the carbon brakes and landing gear activities.

admin
By admin April 23, 2015 16:52