Safran Expects Fewer Than 1,000 LEAP Engine Deliveries in 2020
By Cristina Roca
Safran SA now expects CFM International, its joint venture with
General Electric Co., to deliver less than 1,000 LEAP engines this
year as the coronavirus hits new plane deliveries, the company said
Thursday following its annual general meeting.
The French aerospace-and-defense company said its April revenue
fell to half of what it was during the same period a year ago, with
the effects of the coronavirus being felt more deeply than the
Free-cash-flow generation was positive over the first four
months of the year, Safran said.
Safran, which was already facing headwinds from the shutdown of
Boeing Co.'s 737 MAX plane before the coronavirus started to hit
its business, said it has stepped up an adaptation plan. It is
moving to furlough 35% of its employees and slashing its costs and
investments for the year, the company said.
"The Group's aim is to significantly reduce its costs and to
lower the breakeven point for its businesses," it said. "The
Group's current baseline scenario is for a gradual recovery."
Safran shareholders approved all resolutions submitted to
Thursday's annual meeting, including a decision not to pay a
dividend for 2019.
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(END) Dow Jones Newswires
May 28, 2020 12:22 ET (16:22 GMT)
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