French aerospace group Safran (SAF.PA) raised its annual forecasts after posting higher-than-expected first-half profits on Thursday, led by brisk demand for spare parts for jet engines.
Safran, which together with GE Aerospace (GE.N) co-produces engines for Airbus and Boeing medium-haul jets, also reported higher maintenance profits and saw its recently troubled cabin interiors business edge further into the black.
The company's closely watched recurring operating income rose 27% after certain adjustments to 2.51 billion euros ($2.87 billion), as revenues climbed 13% to 14.77 billion euros.
Analysts were on average expecting first-half recurring operating profit of 2.39 billion euros on revenue of 14.74 billion euros, according to a company-compiled consensus.
Safran raised its full-year forecast for the same profit measure to between 5.0 billion and 5.1 billion euros, up from a previous range of 4.8 billion to 4.9 billion. It predicted revenue growth in the low teens, instead of around 10%.
Founded from a merger of state engine maker Snecma and electronics firm Sagem 20 years ago, Safran last week closed the $1.8-billion acquisition of the actuation and flight controls business of Collins Aerospace.
It also sold a smaller U.S. business in line with regulators' demands for clearing the Collins acquisition.
Safran said the combined transactions would add between 600 million and 700 million euros to group revenues over the rest of the year.
($1 = 0.8747 euros)
