In the wake of Airbus, it is the turn of aeronautical equipment manufacturers to combine the crisis with the past. “The worst is behind us! “, considers Olivier Andriès. For the CEO of Safran, there is no doubt that the rebound of the Covid-19 pandemic “Creates short-term uncertainties, [il a] great confidence in Safran to bounce back ”. The strategic plan until 2025, presented Thursday, December 2, by the engine manufacturer displays forecasts that revive the good years before the onset of the pandemic.
As proof, over the next four years, the engine manufacturer anticipates an annual increase of 10% of its turnover. A return to better fortune which should fill its coffers with a treasure of 10 billion euros. Enough to participate largely in the ongoing restructuring of the sector.
Mr. Andriès also warned that he was “Ready to look at targeted acquisitions”. It primarily targets “Acquisition opportunities in defense equipment to strengthen [les] positions ” of the group. Thus, on Monday December 6, Safran announced “To have entered into exclusive negotiations for the acquisition of Orolia”, a company specializing in particular in atomic clocks and ultra-precise measurement systems. Technologies highly prized by the military.
Resumption of aircraft orders
Orolia, qualified as “Small technological nugget” by Safran, should strengthen the activities of “Sovereignty, defense and space” from the engine manufacturer. Another file under study is the takeover, with Airbus, associated with the Ace Capital Partners fund, of the aeronautical supplier Aubert & Duval. According to Mr. Andriès, “After a first offer rejected in the spring, discussions are continuing”.
In addition to this acquisition policy, the group undertakes “A review of the portfolio relating to the activities inherited from Zodiac Aerospace”. The group also wants to sell 30% of the non-essential activities of the equipment manufacturer, three years after its purchase.
The engine manufacturer is also benefiting from the resumption of aircraft order intake. “We plan to go from 1,700 engines delivered in 2019 to 2,000 per year in 2023”, said Mr. Andriès. To avoid the risk of overheating, Safran has only “Committed to supporting Airbus up to its target of 65 A320s per month in 2023”, reports the general manager. “ Beyond that, no decision is taken ”, he added. Above all, the 2,000 engines promised will be produced “For Airbus and for Boeing”, who, with “A lot of orders for its 737 MAX”, specifies Safran, has decided to exit its 50 medium-haul assembly lines per month by the end of 2023.