Safran posts 6.8% revenue growth in third quarter 2014

Safran reported third-quarter 2014 adjusted revenue was €3,589m, up 6.8% on a reported basis, up 6.3% on an organic basis, compared to third quarter 2013. Aerospace Propulsion activities continue to benefit from services growth, notably civil aftermarket. Aircraft Equipment growth is principally driven by continuing OE momentum. Revenue declined slightly in Defence activities and grew for the Security activities. Third-quarter 2014 civil aftermarket was up 11.9% in USD terms, driven by a robust level of revenue in 2014, spare parts in particular, compared to a high comparison base in the year-ago quarter. The full-year 2014 adjusted revenue and adjusted EBIT outlook is confirmed.
In the third quarter 2014, Aerospace Propulsion recorded revenue of €1,944m, an increase of 9.8% compared to revenue in the year-ago period of €1,771m. On an organic basis, revenue was up 8.9%. Revenue growth was primarily driven by services (+15.9%). The civil aftermarket (measured in USD) increased 11.9% compared to the third quarter 2013. Sales of spare parts for CFM56 and GE90 engines contributed strongly to this momentum. Military aftermarket grew, as did helicopter support revenues notably with the contribution of the RTM322 programme. OE Propulsion revenue increased 3.7%. Sales from helicopter turbine deliveries were down, as in the first half. Civil aircraft OE grew due to slightly higher volume and favourable mix in both CFM56 and high thrust engine modules.