Following a strong performance in the first half, the group expects a 7-9% increase in sales and 20% growth in operating profit for the full year.
Safran reported a 32.6% increase in operating profit for the first half of 2018, at €1.4bn, on sales of €9.5bn (+23.9%). The profit increase includes a four-month contribution of €129m from Zodiac Aerospace, as well as a positive currency impact of €79m (notably comprising the improved EUR/USD hedge rate).
The sales figure includes a four-month contribution of €1.5bn from Zodiac Aerospace and €(445)m of currency impacts. On an organic basis, sales grew 10.1%.
Net profit – Group share was €932m, down from €1.5bn in H1 2017.
For the six-month period, Aerospace Propulsion reported an operating profit of €868m (+20.4%) on sales of €4.7bn (+7.5%); Aircraft Equipment reported an operating profit of €347m (+20.9%) on sales of €2.6bn (+5.6% on an organic basis); and Defense reported an operating profit of €45m (+29%) on sales of €651m (+6.4%.
The group (excluding Zodiac Aerospace) has raised its outlook for 2018 based on the expectation that the strong momentum for Propulsion, Aircraft Equipment and Defense seen in H1 2018 will continue into H2 2018.
Adjusted sales for the full year are expected to grow on an organic basis in the 7-9% range, while adjusted recurring operating profit is seen growing around 20% at a hedged rate of $1.18 to the euro.
Zodiac Aerospace businesses (consolidated for 10 months in 2018) are expected to contribute €3.6-4bn to adjusted sales and €260-300m to adjusted recurring operating profit.