Safran announces 2016 results
Safran recorded 2016 sales of 15.8 billion euros, an increase of 1.6% over the previous year. It posted organic growth of 3.9%. Recurring operating income rose 5.4% and net income jumped 21.7% over 2015, reaching 1.8 billion euros.
In the propulsion sector, the CFM56 program continues its sustained success, with the record delivery of 1,693 engines in 2016, along with strong growth in service business. The new LEAP engine, the CFM56's successor, is also an extraordinary commercial success, with a total of 11,563 orders and commitments in backlog at December 31, 2016.
Safran's performance in the aircraft equipment business was also sustained, mainly due to increased deliveries of wiring and landing gear for the Airbus A350, A320neo and A320ceo, and nacelles for the LEAP engine on the A320neo, along with strong growth in the sale of carbon brakes.
In the defense sector, Safran completed its delivery of FELIN soldier modernization systems to the French army, but this was offset by a significant increase in sales of helicopter flight control systems and guidance systems. Safran recorded a large number of orders in 2016, worth a total of 1.8 billion euros. Major contracts include the Patroller tactical UAV system for the French army, LTLM II portable optronic systems for the U.S. armed forces and a new order from French defense procurement agency DGA for AASM guidance kits.
One of the top highlights of 2016 was India's order for 36 Rafale fighters, the third export contract for this new-generation combat aircraft designed and built by Dassault Aviation. Safran provides a number of major systems for the Rafale, including the M88 engine, power transmission system, landing gear, wheels and carbon brakes, inertial navigation, wiring, etc.
Safran looks to the future with confidence. At the next Annual General Meeting of Shareholders, scheduled for June 15, 2017, it will propose a dividend of €1.52 per share, 10.1% higher than the previous year. An advance payment of €0.69 per share was issued in December 2016.
Click here to see the press release announcing the results for 2016.
You can also see a video of the announcement of annual results (from 8:30 am) and a replay (from 2:30 pm) here.