Safran posts first-quarter 2015 adjusted revenue growth of 14.3%

Safran reported that first-quarter 2015 adjusted revenue was €3,935m, up 14.3% year-on-year including significant positive currency impacts mainly due to the considerable strengthening of the USD. The average USD/EUR spot rate in Q1 2015 was 1.13 compared with 1.37 a year ago. Adjusted revenue growth was 3.4% at constant currency or 2.4% on an organic basis. Organic revenue growth was driven by continued momentum in Aerospace services and Security activities. Civil aftermarket grew 17.8% in USD terms, and continues to be driven by first overhauls of recent CFM56 and GE90 engines. Full-year 2015 outlook is confirmed: Safran expects adjusted revenue to increase by a percentage in the high-single digits (at an estimated average rate of US$ 1.20 to the Euro) and adjusted recurring operating income to grow yet again significantly in low double digits compared to 2014 at a hedged rate of US$ 1.25 to the Euro. Free cash flow is expected to represent 35% to 45% of adjusted recurring operating income, an element of uncertainty being the amount of advance payments and the rhythm of payments by state-clients.