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Safran, France's aerospace company, raises its 2025 outlook following higher mid-year profits

Safran, the French aerospace company, raised its forecasts for next year after announcing higher than expected first-half earnings on Thursday. This was due to brisk demand of spare parts for jet engine.

Safran, who together with GE Aerospace produce engines for Airbus medium-haul aircraft and Boeing long-haul jets reported higher maintenance profits, and its cabin interiors business, which had been struggling, saw further progress in the black.

After certain adjustments, the company's closely-watched recurring operating income increased 27% to 2,51 billion euros ($2,87 billion), while revenues rose 13% to 14,77 billion euros.

According to a consensus compiled by the company, analysts expected an average operating profit of 2,39 billion euros for the first half of 2014 on revenues of 14,74 billion euros.

Safran has raised its forecast for the full year of the same profit measure from 4.8 to 4.9 billion euros to a range between 5.0 and 5.1 billion euro. This is an increase over a previously stated range. It forecast revenue growth of the low teens instead of 10%.

Safran, which was founded 20 years ago by the merger of Snecma, a state-owned engine manufacturer, and Sagem Electronics (now part of Sagem), acquired the Collins Aerospace actuation and control business for $1.8 billion last week.

The company also sold a small U.S. operation to comply with the demands of regulators for clearing Collins' acquisition.

Safran estimated that the combined transactions will add between 600 and 700 million euro to the group's revenues for the remainder of the year. (1 dollar = 0.8747 euro) (Reporting and editing by Tim Hepher)

(source: Reuters)