French group Safran to review nearly a third of former Zodiac business



PARIS, December 2 (Reuters)French Safran SAF.PA announced that it would examine the future of 30% of the Zodiac Aerospace business acquired three years ago, setting financial targets over five years and committing to accelerate investments in the decarbonization of aviation.

Safran agreed to buy Zodiac in 2017 to create the world’s third-largest aerospace supplier after cutting its offer following a series of profit warnings for the aircraft seat maker, and Safran concluded the agreement the following year.

The engine manufacturer Safran said Thursday before a presentation to investors that a reassessment of the historical activity of Zodiac had led to 70% of the activity “confirmed as core business and 30% under review”.

The renowned Safran Seats and Safran Cabin activities, which are part of the company’s Aircraft Interiors division, are both expected to break even in 2022 and double-digit profitability by 2025 and “take advantage of a market recovery. hard hit ”.

Safran did not detail the activities to be re-examined following a portfolio review.

Safran also presented the group’s objectives for 2021-2025, in particular an average growth composed of 10% or more of its turnover and around 15% in the highly supervised secondary market for civil reactors.

He projected an operating margin of 16-18% by 2025 and said he would return to a 40% dividend for his 2022 finances.

(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta)

(([email protected]; +33 1 49 49 54 52; Reuters messaging: [email protected]))

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