By Ian Walker
Safran SA on Thursday reported a swing to net loss for the first half of the year after booking foreign exchange losses, but raised its full-year revenue guidance to reflect significant customer advance payments.
The French aerospace-industry supplier made a net loss for the period of 3.76 billion euros ($3.83 billion) compared with a profit of EUR674 million for the comparable period, while revenue rose to EUR8.68 billion, from EUR6.77 billion. It booked a foreign exchange loss of EUR5.83 billion in the period.
Recurring operating income, one of the company’s preferred metrics, rose 59% to EUR1.05 billion.
Adjusted revenue rose to EUR8.56 billion from EUR6.88 billion. Adjusted revenue consensus was EUR8.39 billion, taken from FactSet and based on five analysts’ forecasts.
Safran said that it now expects to report adjusted revenue of between EUR18.2 billion and EUR18.4 billion for the year, up from previous guidance of EUR18 billion-EUR18.2 billion.
“Safran posted solid results in the first half of the year amid improvement in air traffic in all regions of the world except China,” Chief Executive Olivier Andries said.
“We feel confident in achieving our full year guidance and beyond.”
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