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Zodiac acquisition lifts Safran's first-quarter sales

Safran's acquisition of Zodiac Aerospace in February 2018 is largely responsible for a 36.9% increase in the French group's first-quarter adjusted revenue to €5.78 billion ($6.44 billion).

That increase included a €802 million uplift in total: €781 million related to Zodiac's activities, and €21 million from the acquisition of Collins Aerospace's actuator division, Safran says.

Additionally, the manufacturer registered a "positive currency impact" of €223 million.

On an organic basis, revenue grew 12.6% as a result of "strong momentum" in the group's propulsion, equipment and defence activities.

Turnover in the propulsion segment grew 19.6%, to €2.74 billion, while equipment sales increased 15.4% year on year to €1.46 billion and defence revenues were up 20.8% to €360 million.

In the aircraft equipment segment, nacelle deliveries for the CFM International Leap-1A engine nearly doubled to 120 units from 66 during the first quarter of 2018.

Safran says 24 nacelles were delivered for the Airbus A330neo programme, which is exclusively powered by Rolls-Royce Trent 7000 engines.

Higher sales for landing gear and wiring for the A350 and Boeing 787 also contributed to the segment’s results, the manufacturer notes.

However, the reduction in A380 production has resulted in lower nacelle deliveries for that programme, with just four units handed over during the first quarter, down from 16 in the same period a year earlier.

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Safran sees a recovery in business class seat sales

Safran

Revenues in the aerosystems and aircraft interiors segments – both formerly part of Zodiac – were €587 million and €638 million, respectively.

Safran achieved organic revenue growth of 13.3% for the two segments, but notes that the increase is "not fully representative of the expected annual trends".

In the aircraft interiors business, revenue for cabin equipment "grew slightly", while the seat segment "resumed organic growth driven by the progressive recovery in sales of business-class seats", Safran says.

It describes 2019 as a "transition year for aircraft interiors sales as time is required to translate orders into stronger growth".

The group's first-quarter organic performance is "trending above full-year guidance", Safran says.

Chief executive Philippe Petitcolin states: "Safran started 2019 very strongly with 12.6% organic growth in the first quarter well balanced between all businesses."

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