French aerospace and defense company Safran SA raised its outlook for full year 2018 after experiencing strong growth in all its businesses.
The company reported adjusted profit attributable to owners of €932 million for the first half, down from €1.49 billion in the same period last year. As-reported attributable profit amounted to €535 million, down from a restated €3.22 billion in the first half of 2017.
Adjusted revenue totaled €9.51 billion in the first half, up 23.9% year over year from €7.67 billion. Revenue grew 10.1% on an organic basis.
Recurring operating income increased 32.6% to €1.39 billion from €1.05 billion in the year-ago half. The company said its operating income includes a four-month contribution of €129 million from Zodiac Aerospace, excluding which operating income increased 20.3% year over year.
Safran raised its outlook, excluding Zodiac Aerospace, for full year 2018, saying it expects strong momentum in propulsion, aircraft equipment and defense businesses during the first half to continue in the second half of the year.
The company expects adjusted revenue to grow in the range of 7% to 9% on an organic basis and adjusted recurring operating income is projected to increase by about 20% at a hedged rate of $1.18 to the euro.
The company expects Zodiac Aerospace businesses to contribute between €3.6 billion and €4.0 billion to adjusted revenue and about €260 million to €300 million to recurring operating income.