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Feb. 25, 2021, 1:48 a.m. EST

Safran warns amid sharp fall in profit, revenue

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By Olivia Bugault

Safran SA said Thursday that adjusted profit and revenue dropped sharply last year on the back of the coronavirus pandemic, and issued guidance for 2021.

The French aerospace-and-defense company booked adjusted net profit of 844 million euros ($1.03 billion) compared with EUR2.67 billion the year prior. Adjusted revenue fell 32.5% organically to EUR16.5 billion.

Safran said activities in its fourth quarter were less affected by what it called the greatest crisis in the history of the aerospace industry than during the previous quarter.

Its 2020 operating margin was at 10.2% of sales, in line with the company's forecast.

"The recent slowing of air traffic recovery in several regions of the world generates uncertainty, notably with a risk of delayed recovery of civil aftermarket," the company said about the year ahead.

Safran expects adjusted revenue to fall organically in the low single digits, while its 2021 adjusted recurring operating margin should strongly improve compared with the last six months of 2020.

Safran, which manufactures aircraft engines, based its 2021 outlook on several assumptions including the delivery of more than 800 LEAP engines this year.

The company will propose a dividend of EUR0.43 a share for 2020, it said.

Write to Olivia Bugault at olivia.bugault@wsj.com

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