By Olivia Bugault 
 

Safran said Thursday that adjusted revenue for the year should decrease by roughly a third after adjusted profit more than halved in the first six months of the year.

The French aerospace-and-defense company said adjusted net profit for the period fell to 501 million euros ($590.8 million) from EUR1.35 billion a year earlier. Not adjusted to currency hedging and other items, Safran booked a net loss of EUR340 million, the company said.

Adjusted revenue fell by 29% organically to EUR8.77 billion, it said.

Safran generated a free cash flow of EUR901 million during its first half.

The company set new guidance for the year, assuming a gradual recovery in air traffic and despite considerable uncertainties. It now expects adjusted revenue to decrease by roughly 35%, while recurring operating margin could come around 10% of sales. Safran expects a positive free cash flow in its second quarter.

Safran is targeting the delivery of roughly 800 LEAP engines in 2020.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

July 30, 2020 01:28 ET (05:28 GMT)

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