Safran confirms full-year guidance

Safran provided (24-Oct-2013) confirmed its full-year 2013 profit guidance, with year-to-date operations "reflecting solid year-to-date performance, improved Euro/USD hedging and healthy civil aftermarket", as well as taking into account the improvement in the basis of comparison induced by the restatement of 2012 results. Safran expects adjusted revenue to increase by a percentage in the "mid-to-high single digits" on the basis of an average spot rate of USD1.29 to the Euro and adjusted recurring operating income to increase by around 20% at a hedged rate of USD1.28 to the Euro. Cash flow linked to business performance is likely to be consistent with objectives, while uncertainty remains concerning the rhythm of payments (including advance payments) by state-customers in 4Q2013. The full-year 2013 outlook is based on the following underlying assumptions:

• Healthy increase in aerospace original equipment deliveries;
• Civil aftermarket increase by a percentage in the low-teens;
• Incremental R&D cash effort of around EUR200 million over 2012;
• Increase in tangible capital expenditure of around EUR200 million over 2012;
• Continued margin improvement in Equipment;
• Stable profitability in Defence;
• Profitable growth for the Security business;
• Continued benefits from the on-going 'Safran+' plan to enhance the cost structure and reduce overhead. [more - original PR]