French engine manufacturer Snecma has ended five straight years of losses with better than expected profits, mainly the result of the strong sales of CFM56s for the Airbus A320 and Boeing 737 families.
Consolidated net income for 1997 stood at Fr750 million ($122.5 billion), a Fr250 million increase over the figure predicted by Snecma president Jean-Paul Béchat in January. This came after losses of Fr280 million in 1996.
The state-owned group, which during the year saw its order backlog grow by 30%, to Fr26 billion, also reported sales growth of 23%, to Fr23 billion, compared with Fr18 billion in 1997.
The figures come after a year of major reorganisation in which rocket engine manufacturer SEP became a division of the group, Carbone Industries was merged with Messier-Bugatti and Hispano-Suiza Aerostructures was created. The remaining half-share in landing gear company Messier-Dowty was purchased from the UK's TI Group as the state-owned operation boosted its non-engine related activities.
A new division, Snecma Services, was created in January to build up the engine maintenance side of the business. Sales in the sector accounted for 15% of total turnover, and are expected to grow "significantly", says Béchat. Snecma's other two core businesses, aviation and space propulsion and mechanical equipment, accounted for 62% and 23% of sales respectively.
During the year, 69% of Snecma's products were exported, with 77% of sales occurring in the civil sector, reflecting the emphasis on Airbus and Boeing sales. Production of the CFM56 engine, the joint venture engine produced with General Electric, is expected to top 1,000 units a year for at least the next two years, says Béchato
Source: Flight International