PARIS (Reuters) - France's Safran (PA:SAF) on Thursday reported third-quarter revenue up 6.8 percent and reaffirmed its main financial targets for the year, while expressing concerns over "significant uncertainty" in the pace of revenue payments from governments.
The part-privatised aerospace and defence contractor said third-quarter revenue of 3.589 billion euros (2.83 billion pounds) was up 6.3 percent on a like-for-like basis, driven by robust demand for new aircraft, while underlying defence sales fell 4.3 percent.
The widely watched aftermarket for civil aero engines rose 11.9 percent in dollar terms in the third quarter and 10.3 percent in the first nine months of the year.
Safran co-produces the world's most-sold jet engines, the CFM56, with General Electric (N:GE).
Development of the joint venture's new LEAP engine is well on track" following a first test flight earlier this month, Chief Executive Jean-Paul Herteman said in a statement.
For 2014, Safran is targeting a percentage growth in the "mid-single digits" for revenue and "approaching the mid-teens" for its core operating income, based partly on a percentage growth of the civil aftermarket in the "low to mid-teens".
Business-related free cashflow will be "consistent with objectives, while significant uncertainty remains concerning the rhythm of payments (including advance payments) by state-customers in the fourth quarter," Safran said.
The company has not given a numerical cash target but said at the half-way stage it believed a free cashflow equivalent to 35 percent of its core or adjusted recurring operating income was "achievable" for 2014.
(Reporting by Tim Hepher; Editing by James Regan)