Aircraft

French aerospace firm Safran Group turned in a bright sales performance last year, registering a 12% rise in its aircraft equipment and a 4% increase in its aerospace propulsion revenues.

The provisional figures show a 12.4% hike in Safran’s aircraft equipment sales, taking the arm to a €4.5 billion ($5.4 billion) divisional turnover. At constant exchange rates the unit would have instead registered 14.6% growth.

Safran says that all of its aerospace equipment activities, including its nacelle, wiring, landing-gear and wheels and brakes work, contributed to the performance.

Aerospace propulsion sales climbed by 4.1%, or by 6.4% at constant exchange rates, to €2.5 billion. This growth stemmed from increased commercial aircraft engine sales, helicopter engines and spare parts sales, although Safran’s military engine business recorded a drop in deliveries.

During 2005 Safran registered a record number of CFM International CFM56 engine orders, totalling 1,640 for the year, and 1,251 helicopter engine orders. CFMI is a 50/50 joint venture between Snecma and US engine giant General Electric.

Total group revenue, taking account of communications and defence security sales, amounted to just under €10.6 billion – 4.6% higher than in 2004.

Safran says that its group net financial position “showed significant improvement”, shifting from a net debt of €1.1 billion on 30 June 2005 to €490 million by year-end on 31 December.

“Safran still expects a sustained operating margin and increase in net income [for 2005],” the firm says. “This year should see a continued increase in sales, operating income and net income.”

VICTORIA MOORES / LONDON