PARIS (Reuters) – French jet engine maker saffron (EPA:) posted an 18.1% year-on-year increase in first-quarter revenue and confirmed financial targets for the year, while joining US partner GE Aerospace in lowering its engine delivery target.
The Paris-based company reported quarterly revenue of €6.22 billion ($6.67 billion), up 19.1% on an underlying basis.
The widely watched civilian aftermarket business grew 27.3% in dollar terms. But LEAP jet engine deliveries have remained flat after a slow start to the year in aircraft production, particularly at Boeing (NYSE:).
Safran co-produces engines for Boeing and Airbus narrow-body aircraft with GE Aerospace through its CFM joint venture, is the sole supplier to the Boeing 737 MAX family of aircraft and competes with Pratt & Whitney for the Airbus A320neo series.
Like GE earlier this week, Safran now expects LEAP engine deliveries to rise 10% to 15% this year, a downward revision from its previous estimate of 20% to 25%.
Earlier this month, Reuters first reported that Boeing's MAX production had fallen to single digits per month.
Overall propulsion revenues rose 15.4% on a like-for-like basis, lagging other divisions including Aircraft Interiors whose 23.8% growth was mainly driven by services revenues associated with higher air traffic.
However, business class seat deliveries fell by 25%.
($1 = 0.9328 euros)
