Safran: The aviation industry will gradually recover after the 2020 crisis
- Author:Besson
- Release Date:2021-02-27
China Aviation News: According to Reuters, French Safran expects that the aviation industry will gradually recover from the worst crisis. Last year, the company's demand for jet engines and other equipment fell sharply.
The world’s third-largest aerospace manufacturer said: In 2020, recurring operating income fell 56% to 1.686 billion euros (US$2.1 billion), and revenue fell 33% to 16.498 billion euros. Operating profit margin fell by 530 basis points to 10.2%. Safran expects that by 2021, key profitability indicators will recover more than 100 basis points, and the recovery will begin in the third quarter.
This is the first performance announcement since Olivier Andriès succeeded Philippe Petitcolin as CEO. Anders said that the company's lowered revenue forecast is related to the recent cuts in Boeing's 787 production and the severe crisis encountered in 2020.
Anders said that with the Chinese government taking preventive measures to avoid a new round of coronavirus infections, the downturn in China's air transport in recent months has bottomed out last week, with a "very strong" rebound this week.
Air transportation drives most of the company's engine business through services and parts, and the demand for these services and parts depends on the flight time. As a result, Safran’s civilian aftermarket revenue fell by 43% (in U.S. dollars) during the 2020 pandemic travel restrictions.
A joint venture between Safran and General Electric (GE) produces civilian jet engines for Boeing and Airbus. Shipments of the latest generation of LEAP engines were halved last year, from 1,736 units in 2019 to 815 units. Safran said it expects to deliver more than 800 units in 2021.
The world’s third-largest aerospace manufacturer said: In 2020, recurring operating income fell 56% to 1.686 billion euros (US$2.1 billion), and revenue fell 33% to 16.498 billion euros. Operating profit margin fell by 530 basis points to 10.2%. Safran expects that by 2021, key profitability indicators will recover more than 100 basis points, and the recovery will begin in the third quarter.
This is the first performance announcement since Olivier Andriès succeeded Philippe Petitcolin as CEO. Anders said that the company's lowered revenue forecast is related to the recent cuts in Boeing's 787 production and the severe crisis encountered in 2020.
Anders said that with the Chinese government taking preventive measures to avoid a new round of coronavirus infections, the downturn in China's air transport in recent months has bottomed out last week, with a "very strong" rebound this week.
Air transportation drives most of the company's engine business through services and parts, and the demand for these services and parts depends on the flight time. As a result, Safran’s civilian aftermarket revenue fell by 43% (in U.S. dollars) during the 2020 pandemic travel restrictions.
A joint venture between Safran and General Electric (GE) produces civilian jet engines for Boeing and Airbus. Shipments of the latest generation of LEAP engines were halved last year, from 1,736 units in 2019 to 815 units. Safran said it expects to deliver more than 800 units in 2021.