Frances Safran tackles impact of Ukraine war but confirms targets

div classBodysc17zpet90 cdBBJodivpPARIS Reuters – French aerospace group Safran warned of “significant impacts” from the war in Ukraine and from rising inflation, but confirmed fullyear forecasts as it reported 22 growth in firstquarter revenue.p

pThe maker of jet engines and landing gear said quarterly adjusted sales rose 17 on a likeforlike basis to 4.071 billion euros 4.3 billion.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“We are taking vigorous steps to offset fully the margin impact of the RussiaUkraine conflict and inflation, notably with additional savings,” Chief Executive Olivier Andries said.p

pTogether with General Electric, Safran coproduces the worlds most sold jet engines for Boeing and Airbus mediumhaul airliners through their CFM venture.p

pThe widely watched civil aftermarket, depressed during the COVID pandemic, rose 52.9 in dollar terms in the first quarter, contributing to an 18.8 increase in total propulsion revenues.p

pSafran had been active in Russia where it supplies engines for the Superjet regional plane and Kamov helicopters, while also providing services for some 500 CFMpowered jetliners. p

pIt has suspended exports and services under European Union sanctions imposed after Russias invasion of Ukraine. Its ArianeGroup rocket venture with Airbus has suspended using Soyouz launches.p

pSafran also relies on Russia for 50 of its needs of titanium, used in engine parts and landing gear.p

pIt said its 2022 needs were covered and it was securing alternatives.p

pInflationary pressure on raw materials linked to the crisis and extra freight spending will add costs equivalent to 0.8 percentage points of its profit margin, Safran said.p

pThe group announced “vigorous cost savings” to offset a total headwind equivalent to 1.5 of its 2022 recurring margin but confirmed fullyear forecasts. 1 0.9511 eurosp

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pp Reporting by Tim Hepher Editing by Sudip KarGuptap

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