PARIS, July 31 Safran expects some
impact on its Sagem defence electronics business as a result of
new European Union and U.S. sanctions on Russia, but this will
not significantly affect the parent group, the head of the
French aerospace company said on Thursday.
"Our defence activities are 10 percent of the group total,
and Russia is not by any means the largest customer, so you are
talking about something barely material at the Safran level,"
Jean-Paul Herteman told reporters on a conference call.
He declined to describe the Sagem technology that would be
potentially affected, saying this was confidential.
Herteman also said Boeing had asked CFM, a joint
venture between Safran and General Electric, to speed
development of the LEAP-1B engine for its 737 MAX - one reason
why Safran had upgraded its R&D and investment forecast for the
But this does not imply any change in the schedule for entry
to service for the upgraded jet, he said. Boeing has said it
plans to introduce the aircraft in 2017.
Safran is looking at spending more on strengthening its
supply chain but does not intend to buy companies outright,
Finance Director Ross McInnes said after the company reported
Both executives said Safran is confident it can catch up
with its full-year targets after a drop in growth in the civil
aftermarket in the second quarter, which they blamed on an
unfavourable comparison with the same period last year.
(Reporting by Tim Hepher; Editing by James Regan)