* Revenue up 14.1 pct to 6.413 bln euros
* Civil aftermarket up 8.1 pct in H1
* French group reaffirms full-year forecast
PARIS, July 31 France's Safran unveiled
a 23 percent rise in first-half operating income boosted by
currency gains and acquisitions and reaffirmed its forecasts for
the year as aerospace continues to grow faster than the rest of
Revenues at the maker of jet engines, infra-red army goggles
and airport scanning equipment rose 14 percent to 6.4 billion
euros, representing 5.2 percent growth on a like-for-like basis.
Profits benefited from record aircraft production as Airbus
and Boeing tap into transport growth in emerging
markets and demand from Western airlines for greater fuel
savings, but the second quarter also saw a slowdown in sales of
Recurring operating profit grew to 681 million euros or 662
million after one-off items.
Analysts were on average expecting operating income of 652
million euros on revenues of of 6.429 billion, according to
Thomson Reuters I/B/E/S consensus data.
In a key indicator, Safran reported low double-digit growth
in spares revenue for CFM jet engines that power the bulk of the
world's short- or medium-haul airliner fleet, co-produced with
The figure is under the spotlight after U.S. rival United
Technologies halved its forecast for 2012 growth in
commercial spares at engine unit Pratt & Whitney to 5 percent.
Safran said total civil aftermarket revenues rose 8.1
percent in the first half, in line with a full-year forecast of
high single-digit growth. This included a "flattish" performance
in larger engines after 3 years of strong growth.
In the first quarter, the civil aftermarket had risen 15.1
percent driven by 24.2 percent growth in CFM spares revenue. The
company has stopped reporting CFM spares revenue separately.
Although traffic is increasing and aircraft and engine
producton are running at record levels, some airlines are
limiting spending on spares to save cash, affecting an area in
which engine makers make their strongest margins.
Safran Chief Executive Jean-Paul Herteman said the large
installed base worldwide of CFM jet engines would nonetheless
provide "several years of expansion" in aftermarket services.
Net income grew 30 percent in the first half.
Safran reaffirmed its growth forecasts for the full year
including revenues slightly above 10 percent and recurring
operating income of around 20 percent.
CFM and Pratt & Whitney compete to provide engines on Airbus
medium-haul A320-family jets, while CFM is the sole
engine supplier for similar Boeing 737 aircraft.
(Reporting by Cyril Altmeyer, Tim Hepher; Editing by Christian