Safran reports sales for Q3 and first nine months of 2017
For the first nine months of the year, Safran reported adjusted revenue of 11,853 million euros, an increase of 349 million euros (3%) over the year-earlier period. On an organic basis, revenue increased 5.1%, driven by growth in all businesses.
Highlights include the delivery of 1,333 CFM56 and LEAP engines as of September 30, 2017. In addition to the 2,192 LEAP engine orders and commitments recorded over the first nine months of the year, CFM logged 424 orders and commitments for CFM56 engines, as demand was sustained. The two engine programs together have a backlog of 14,777 orders at September 30, equal to more than seven years of production.
CFM continues to ramp up LEAP production, as planned. A total of 110 engines were delivered during the quarter, bringing the total number of deliveries for the year to September 30 to 257 units. In 2016, 33 engines had been delivered over the same period, including 22 in the third quarter. CFM maintains its target of delivering at least 450 LEAP engines in 2017.
Production of CFM56 engines was sustained, with a total of 1,076 delivered during the first nine months of the year, including 366 in the third quarter. In line with the planned production ramp-down, 217 fewer engines were delivered in the first nine months of 2017 than in the year-earlier period.
Also worth noting in 2017 was the successful first flight of the Airbus A330neo on October 19, as well as several major carbon brake contracts won by Safran, most notably with United Airlines, Ethiopian and GOL for the Boeing 737 NG and MAX, and with Interjet for the A320neo.
Safran presented its new family of high-power turboshaft engines, dubbed Aneto, for the super-medium and heavy helicopter market. The first model in this family, the Aneto-1K, rated at 2,500 shaft horsepower (shp), has already been chosen by Leonardo to power the twin-engine AW189K. This engine made its first flight on this helicopter in March 2017, and entry into service is slated for the fourth quarter of 2018.
In the Defense sector, Safran signed its first contract for the latest-generation PASEO NS (Naval System) sight, which will outfit new frigates deployed by an Asian navy. Scheduled for delivery in late 2018, the PASEO NS offers day/night surveillance and target designation capabilities.
Safran is raising its revenue expectation, which should be higher than the range announced at the beginning of the year, and confirms its outlook for adjusted recurring operating income in 2017 to be close to that of 2016. Safran also confirms its previous guidance for free cash flow, which should represent more than 45% of adjusted recurring operating income, an element of uncertainty being the rhythm of payments by state clients.
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