PARIS (Reuters) - France's Safran (PA:SAF) posted a faster-than-expected rise in 2019 core profit led by jet engine spare parts, but warned of flat-to-lower 2020 revenues as it counts the cost of Boeing's (N:BA) 737 MAX grounding crisis.
Safran, which is the world's second-largest aerospace supplier, said operating profit rose 24.6% on a like-for-like basis to 3.82 billion euros (3.22 billion pounds) while revenues rose by an underlying 9.3% to 24.64 billion.
Analysts on average expected 2019 operating income of 3.75 billion euros on revenues of 24.484 billion, according to Refinitv data.
The Boeing 737 MAX crisis dominated a mixed outlook for 2020, with Safran predicting a fall of up to 5% in revenues even as operating income grows around 5%. Safran also said its medium term objectives would be reviewed after the MAX returns to service, which it expects in the middle of the year.
Safran co-produces LEAP engines for the MAX and some Airbus jets with General Electric (N:GE) through CFM International.
It assumed CFM would produce 1,400 LEAP engines in 2020, down from a roughly comparable 1,736 deliveries in 2019.
