Safran Reports Soaring Profits

Safran Reports Soaring Profits

Sales were boosted by strong demand from the aircraft-making sector and rose 15.5% compared with a target of slightly more than 10%.

PARIS — Safran reported Thursday a record net profit of nearly 1 billion euros (US $1.32 billion) in 2012, an increase of 55% from the 2011 level, and said that the outlook for this year was "very good.”

Sales were boosted by strong demand from the aircraft-making sector and rose to 13.5 billion euros, an increase of 15.5% compared with a target of slightly more than 10%.

Current operating profit rose 23.7%, beating the group's target of 20%.

The net profit was 999 million euros from 644 million euros in 2011.

For this year, the company expected sales to rise 5% and current operating profit to increase 15%.

But the price of shares in the group fell 4.51% in morning trading to 33.49 euros per share. The overall CAC 40 index was showing a fall of 1.82%.

At Global Equities, trader Xavier de Villepion said that the figures were remarkable but that investors were selling, possibly because they thought the share, which had risen 40% last year, looked expensive.

Copyright Agence France-Presse, 2013

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