PARIS Feb 24 France's Safran posted a
5.4 percent rise in 2016 core operating profit to 2.404 billion
euros and projected stable 2017 income, based on the remaining
operations as it prepares to complete the sale of its security
The engine and parts maker, which recently set out an agreed
offer for Zodiac Aerospace, said growth was driven
mainly by its aircraft equipment division where overhauls of
aircraft wheels and brakes fuelled higher service revenues.
In the main aerospace propulsion division, widely watched
civil aftermarket revenues for jet engines grew 6.9 percent in
dollar terms, after a 12.5 percent bounce in the fourth quarter,
and Safran predicted similar growth for 2017.
Safran's business is dominated by its 50 percent share
alongside General Electric in CFM International, the
world's lagest jet engine maker by the number of units sold.
Safran said production and testing of CFM's new LEAP engine
was going to plan, with Boeing on course to put its 737 MAX into
service in the first half of 2017. An Airbus equivalent entered
into service last year.
Safran said it would invest 850 million euros to support a
transition in production from the best-selling CFM56, which is
used on all Boeing and some Airbus medium-haul jets, to the
successor LEAP model.
Safran's total adjusted revenue grew 1.6 percent to 15.781
billion euros in 2016 and the group said it should grow by
another 2 to 3 percent in 2017.
(Reporting by Tim Hepher, Editng by Dominique Vidalon)