Has Safran survived the honeymoon?


[Flight International Editor Murdo Morrison writes:]


I’m at the first half-year results announcement of the newly merged Safran at Paris’s opulent George V hotel, and the first test of how this very French marriage between aerospace giant Snecma and consumer communications specialist Sagem has got through its honeymoon (the merger was completed in May). Chairman Jean-Paul Bechat, who previously ran Snecma, is measured: financially the results are heading in the right direction and EBIT is broadly in line with what the company promised shareholders when the merger took place. Although Bechat talked about the benefits of synergies between the seemingly diverse companies – Snecma makes engines, landing gear and nascelles; Sagem mobile phones, consumer electronics and competes with Thales on defence security systems - it is really too early for many of these to have kicked in. The most worrying thing for Bechat must be the loss-making mobile phones business – now over a fifth of the merged group – which is losing money hand over fist following a Motorola-instigated price war this year. More on Safran’s performance in the next issue of Flight International (18-24 October).


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