Safran SA raised its 2019 adjusted guidance for revenue and operating income, as it reported higher consolidated profit in the first half compared to a year earlier.
Profit attributable to owners of the parent jumped to €1.43 billion from €535 million year over year.
Adjusted attributable profit increased 45.2% to €1.35 billion in the six months to June from €932 million in the prior-year period. Adjusted EPS jumped 46.4% to €3.09 from €2.11.
Adjusted recurring operating income climbed 35.9% to €1.88 billion from €1.39 billion. Adjusted revenue increased 27.3% on a reported basis to €12.10 billion from €9.51 billion. The S&P Global Market Intelligence consensus revenue estimate for the first half was €11.70 billion.
The French aerospace and defense company expects 2019 adjusted revenue to grow about 15% year over year, compared with prior guidance of 7% to 9% growth.
Adjusted recurring operating income is projected to rise "comfortably above 20%." The company previously estimated growth to be "in the low teens."
It also revised its free cash flow outlook to reflect the global grounding of Boeing Co.'s 737 MAX jets.
Assuming the model returns to service in the fourth quarter, free cash flow is expected to range from 50% to 55% of adjusted recurring operating income, compared with a prior free cash flow projection of about 55%.
If the grounding continues until the end of 2019, free cash flow is expected to be below 50% of adjusted recurring operating income.
Meanwhile, Safran's board decided to extend CEO Philippe Petitcolin's term until Dec. 31, 2020, as the company launched a search for his successor.
