{"id":23837,"date":"2023-04-26T08:58:42","date_gmt":"2023-04-26T08:58:42","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/french-company-safran-keeps\/"},"modified":"2023-04-26T09:00:59","modified_gmt":"2023-04-26T09:00:59","slug":"safran-posts-strong-sales","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/safran-posts-strong-sales\/","title":{"rendered":"Safran posts strong sales but sees supply chain risks"},"content":{"rendered":"<p>By Tim Hepher<\/p>\n<p>PARIS (Reuters) -French aero engine maker Safran unveiled stronger than expected quarterly revenues on Wednesday, buoyed by a swift recovery in air travel, but predicted problems with aviation&#8217;s supply chain could drag into next year.<\/p>\n<p>&#8220;The (pandemic) demand crisis is well and truly behind us,&#8221; Chief Executive Olivier Andries said after reporting a 25%underlying rise in first-quarter revenues to 5.266 billion euros ($5.78 billion.<\/p>\n<p>Safran provides engines for medium-haul jets through its CFM International joint venture with General Electric. <\/p>\n<p>Safran&#8217;s core propulsion revenues rose 34.9% like for like.<\/p>\n<p>The company reaffirmed full-year forecasts including revenues of at least 23 billion euros but said the main risk remained supply chains, led by materials and labour shortages.<\/p>\n<p>&#8220;Guidance is unchanged but the statement makes it clear that risk is on supply side,&#8221; Agency Partners analyst Nick Cunningham wrote.<\/p>\n<p>Shares in the world&#8217;s third-largest aerospace contractor fell 2.1%.<\/p>\n<p>Andries said all metals were on the watch list for possible disruption, notably steel.<\/p>\n<p>&#8220;Steel is a source of tension,&#8221; he told reporters.<\/p>\n<p>In January, Reuters reported that steel capacity had emerged as a growing source of concern inside planemaker Airbus, partly following debt restructuring at Liberty Steel.<\/p>\n<p>Titanium, aluminium, nickel and some rare metals also remain under observation, Andries said.<\/p>\n<p>Planemakers have slowed production plans in recent months, easing a tug of war between new jet factories and the repair shops for existing fleets where spare engines are also urgently needed to help airlines meet a snapback in air travel.<\/p>\n<p>In the first quarter, CFM was able to allocate a greater percentage of engines to the civil aftermarket, where its revenues grew 38.1% in dollar terms.<\/p>\n<p>Air traffic is rebounding strongly following the pandemic, with key medium-haul markets already exceeding pre-COVID levels and long-haul traffic making up lost ground.<\/p>\n<p>Andries meanwhile told reporters he still expected the first &#8220;qualification flight&#8221; of Europe&#8217;s delayed Ariane 6 rocket before end-year, with the first commercial flight in 2024.<\/p>\n<p>($1 = 0.9112 euros)<\/p>\n<p> (Reporting by Tim Hepher Editing by Sudip Kar-Gupta and Mark Potter)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/safran-posts-strong-sales\/file-photo-the-logo-of-safran-is-seen-outside-the\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P057-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3P057-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Tim Hepher PARIS (Reuters) -French aero engine maker Safran unveiled stronger than expected quarterly revenues on Wednesday, buoyed by a swift recovery in air travel, but predicted problems with aviation&#8217;s supply chain could drag into next year. &#8220;The (pandemic) demand crisis is well and truly behind us,&#8221; Chief Executive Olivier Andries said after reporting [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":23838,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-23837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P057-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=23837"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23837\/revisions"}],"predecessor-version":[{"id":24092,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23837\/revisions\/24092"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/23838"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=23837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=23837"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=23837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}