Strong 2015 financial results for French aerospace group Safran would have been exceptional results, had it not been for a €654 million ($720 million) charge relating to delays in the development of its new Silvercrest engine for business jets. With this write-down, operating profits stood at just over €1.7 billion ($1.9 billion), which was 12.5 percent down on the comparable figure for 2014. However, without it, operating profits would have been €2.4 billion ($2.6 billion), a 16 percent increase. Overall group revenues for last year increased by 13 percent, to €17.4 billion ($19.2 billion).
The main contributors to the group’s bottom line last year were record deliveries of the CFM56 engines that Safran produces with its CFM International joint venture partners GE Aviation (1,612 CFM56s—up from 1,560 in 2014). Strong sales of the new Leap turbofans powering the Boeing 737 Max, Airbus A320neo and Comac C919 have driven CFM’s total backlog to 13,252 units (including more than 10,000 Leaps).
With certification now complete for the Leap-1A for the new A320 family, development work is focused on the -1B for the new Boeing narrowbodies and the -1C for the C919. At the same time, the CFM partners are preparing for a massive production ramp up that should see annual Leap output reach 1,800 units.
Another strong aspect of Safran’s performance was an 18.9 percent increase in civil aftermarket revenues. The France-based group benefitted from the increased value of its U.S. dollar revenues. Its aircraft equipment division is now producing growing volumes of wiring, landing gear and accessory gearboxes for the new A350XWB widebody.
In the rotorcraft sector, the Arrius 2R engine developed by Safran subsidiary Turbomeca for Bell’s Jet Ranger 505 X helicopter completed certification late last year, ready for first deliveries in 2016. The new Airbus Helicopters H160, powered by the Arrano 1A turboshaft, made its first flight last month.
Military prospects were boosted by the decision of Egypt and Qatar to each buy 24 Dassault Rafale fighters, powered by Safran’s M88 engines and featuring its AASM Hammer missiles. Another success was France’s selection of Safran’s Patroller long-endurance tactical drone.
“Safran met all its targets in 2015,” commented CEO Philippe Petitcolon. “Commercial activity was strong, revenue grew, recurring operating income increased, self-funded R&D started to decline and free cash flow rose, all in line with guidance updated in July. Production rates escalated to record levels in many areas and group profit margin reached 14 percent of sales.”