PARIS (Reuters) -French jet engine maker Safran posted higher first-half earnings and raised some forecasts as airlines bought more spare parts to serve a recovery in air travel, but warned supply chain problems could last well into 2023. The world's third largest aerospace supplier, whose products range from wheels to wiring and commercial engines to thrusters for satellites, said recurring operating profit rose 59% to 1.047 billion euros ($1.1 billion) as revenue increased 24% to 8.56 billion. It upped full-year forecasts for revenue to 18-2-18.4 billion euros from 18.0-18.2 billion and for free cashflow to 2.4 billion euros from 2.0 billion.
European planemaker Airbus looks set to raise narrowbody jetliner production for 2024 after reaching a compromise deal with at least two suppliers following months of wrangling over the speed of post-pandemic recovery. France's Safran, which co-produces engines with General Electric under their CFM venture, and Germany's MTU Aero Engines, affiliated with Pratt & Whitney, both said they had struck deals with Airbus on 2024. He would not discuss specifics except to say the new target differs from 2023, effectively ruling out a flattening of production of the A320neo which competes with Boeing's 737 MAX.
French aerospace group Safran warned of "significant impacts" from the war in Ukraine and from rising inflation, but confirmed full-year forecasts as it reported 22% growth in first-quarter revenue. The maker of jet engines and landing gear said quarterly adjusted sales rose 17% on a like-for-like basis to 4.071 billion euros ($4.3 billion). "We are taking vigorous steps to offset fully the margin impact of the Russia-Ukraine conflict and inflation, notably with additional savings," Chief Executive Olivier Andries said.