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AIR - Airbus SE News Story

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Market Cap £66.04bn
Enterprise Value £68.35bn
Revenue £43.22bn
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UPDATE 1-France's Safran sees gradual recovery after crisis-hit 2020

Thu 25th February, 2021 7:17am
(Adds CEO comments)
    PARIS, Feb 25 (Reuters) - France's Safran  SAF.PA  predicted
a gradual recovery from the aviation industry's worst crisis,
after seeing demand for its jet engines and services drop
sharply last year.
    The world's third largest aerospace contractor said 2020
recurring operating income fell 56% to 1.686 billion euros 
($2.1 billion) as revenues slid 33% to 16.498 billion.
    Operating margin dropped 530 basis points to 10.2%.
    For 2021, Safran expects this key profitability gauge to
improve by more than 100 basis points, with the recovery kicking
in from the third quarter.
    It predicted 2021 revenues would decrease 2-4% in percentage
terms, and on a like-for-like basis.
    Unveiling results for the first time since succeeding
Philippe Petitcolin as chief executive, Olivier Andries linked
the lower revenue forecast to recent cuts in Boeing 787 output
and a strong pre-crisis comparison period in first-quarter 2020.
    He told reporters a slump in Chinese air traffic in recent
months, as Beijing took preventive measures to avoid a new wave
of COVID-19 infections, had bottomed out last week before seeing
a "very, very strong" rebound this week.
    Air traffic drives the majority of the company's engine
business through aftermarket sales of repairs and parts, or
through service agreements based on the hours flown.
    Safran's widely watched civil aftermarket revenue fell 43%
in dollar terms in 2020 as travel bans and lockdowns hit airline
traffic during the pandemic.
    Safran co-produces jet engines with General Electric  GE.N 
for Boeing  BA.N  and Airbus  AIR.PA  medium-haul jets.
    Joint shipments of the latest-generation LEAP engine more
than halved last year to 815 units from 1,736 in 2019. Safran
said its forecasts assumed more than 800 deliveries in 2021.
    Andries expressed confidence in Airbus plans to boost
single-aisle output by 12.5% to 45 jets a month by end-year,
saying Safran could accommodate the increase "with no problem".
    ($1 = 0.8211 euros)

 (Reporting by Tim Hepher;
Editing by Sudip Kar-Gupta and Jan Harvey)
 ((; +33 1 49 49 54 52; Reuters
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