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Safran Raises Guidance on Strong LEAP Engine Demand

Wall Street Journal US Business •
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Safran raised its full-year guidance Tuesday, citing stronger-than-expected demand for LEAP civil aircraft engines and spare parts. The French aerospace supplier now forecasts annual revenue to grow by a figure in the mid-teens percentage range on an adjusted basis, with recurring operating profit forecast at €6.4-6.5B ($7.28B-$7.39B).

The company had previously expected full-year revenue to rise by a low- to mid-teens percentage and recurring operating profit to range from €6.1B to €6.2B, on an adjusted basis. Adjusted revenue jumped 19%, with recurring operating profit up 29%.

Safran has benefited from rising deliveries of LEAP aircraft engines—which it makes through its CFM joint venture with GE Aerospace—as well as continued demand for aftermarket services and growing orders for defense equipment.