LONDON (Reuters) - France's Safran (PA:SAF) confirmed on Monday that it was selling its Morpho Detection business, and said it was reviewing strategic options for its identity and security activities.
In a strategy update, the partially state-owned aerospace and defence group also said it was interested in adding to its aircraft equipment business if its financial goals were met.
It reiterated targets for 2016 and said it would maintain propulsion margins in the mid-to-high teens in 2016-2020 thanks to aftermarket activity as it switches to a new version of a civil jet engine co-produced with General Electric (N:GE).
It said group margins should remain consistent with 2015 levels during what it described as a transitional period.
Safran issued the update ahead of an investor meeting in London later on Monday.
The company appeared last month to be edging closer towards a sale of its Morpho Detection airport security business.
Presenting 2015 results in February, Chief Executive Philippe Petitcolin declined to comment on a Le Figaro newspaper report that Safran planned to sell the explosives-screening business, but said its strategy would be discussed in London.
Safran said on Monday that it would "strengthen organically (its) current aircraft equipment business lines with an interest in additions if they are consistent with Safran’s identity and in strict compliance with Safran’s financial objectives".
In 2010, Safran withdrew a bid for aircraft equipment and interiors maker Zodiac Aerospace (PA:ZODC), whose shares have been hit by seat production problems lately.