PARIS (Reuters) – French jet engine maker Safran (EPA:) reported an 18.1% year-on-year increase in first-quarter revenue and reaffirmed financial targets for the year, while joining its US partner GE Aerospace in lowering its engine delivery target.
The Paris-based company reported quarterly revenue of 6.22 billion euros ($6.67 billion), up 19.1% from its benchmark.
The widely followed commercial aftermarket business grew 27.3% in dollar terms. But LEAP jet engine deliveries remained flat after a slow start to the year in aircraft production, especially at Boeing (NYSE:).
Safran produces engines for Boeing and Airbus narrow-body jets with GE Aerospace through their CFM joint venture, which is the sole supplier of the Boeing 737 MAX family of aircraft and competes with Pratt & Whitney on the Airbus A320neo series.
Echoing GE earlier this week, Safran now forecasts LEAP engine deliveries will grow 10% to 15% this year, a downward revision from its previous estimate of 20% to 25% growth.
Earlier this month, Reuters first reported that Boeing’s MAX production fell to single digits for the month.
Total engine revenues, up 15.4% year-over-year, lagged other divisions, including aircraft cabins, which grew 23.8% primarily driven by service revenues related to increased air travel.
However, deliveries of business class seats fell by 25%.
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