SAFRAN : first quarter revenue 2010 in line with full-year outlook for stable revenue

PR Newswire/Les Echos/

Press release

   Safran first quarter revenue 2010 in line with full-year outlook for stable
                                       revenue

All figures in this press release represent Adjusted[1] data. Please refer to
definition provided in the Notes on page 6 of this press release.

KEY NUMBERS FOR THE FIRST QUARTER 2010

* First-quarter 2010 revenue was Euro 2,426 million, down 2.5% on a reported
  basis, down 3.0% on an organic basis, compared to a first quarter 2009 base
  which was strong in aerospace.

* Solid revenue contribution from Defence (Optronics) and Security (Detection).

* Aerospace Propulsion reported fairly stable revenue. Decline in revenue of
  Aircraft Equipment was primarily attributable to lower volumes in nacelles
  and landing systems, in particular in business and regional jet segments and
  as a consequence of A380 aircraft delivery slippages.

* Services (spares and MRO) share of revenue remained stable at 48% in Aerospace
  Propulsion and increased to 34% in Aircraft Equipment.

* Outlook for full-year 2010 is confirmed.

KEY BUSINESS HIGH LIGHTS FOR THE FIRST QUARTER 2010

* Safran inaugurated two new plants in Queretaro, Mexico to produce parts for
  the CFM56 engines powering the B737, and main parts for the landing gear on
  the A320, A330 and B787.

* Positive trends in services for Aerospace Equipment. Messier-Bugatti carbon
  brakes chosen to retrofit Aeromexico B737NG fleet. Aircelle signed a
  comprehensive thrust reverser maintenance contract for Trent700 engines on
  Garuda Indonesia's A330 jetliners.

* Continued commercial momentum in Defence, notably in portable optronics
  equipment such as infrared binoculars and sight equipment.

* Security driven by cutting-edge technologies: TSA-certified explosive trace
  detection system now commercially available for identification of complex
  explosive substances. Safran announced the deployment of the world's first
  automatic narcotics detection system at London's Heathrow Airport. The Group
  was also selected by Israeli Airport Authority for new generation integrated
  Computed Tomography and diffraction X-ray inspection.

Paris, April 20, 2010 - Safran (NYSE Euronext Paris: SAF) today reported its
revenue for the first quarter of 2010.

For the first quarter of 2010, Safran's revenue was Euro 2,426 million, compared
to Euro 2,487 million in the year-ago period, a 2.5% year-over-year decrease.
Group revenue organically declined by 3.0%. Organic revenue was determined by
deducting from 2010 figures the contribution of Security activities acquired in
2009 and by applying constant exchange rates. Hence, the following calculations
were applied:

Reported growth                                                      (2.5)%
                     Impact of acquisitions Euro 51 million  (2.1)%
                            Currency impact Euro (37) million 1.6%
Organic growth                                                       (3.0)%

Acquisitions had an impact of Euro 51 million on revenue in the first quarter
of 2010, which mainly included the consolidation of:
* MorphoTrak (formerly Printrak): Euro 8 million
* MorphoDetection (formerly GE Homeland Protection): Euro 44 million

The adverse currency impact of Euro (37) million for first-quarter 2010 was
mostly a combination of a mild deterioration in the Group's hedged rate
(USD1.46 to the Euro vs. USD1 .45 in the year ago period) and a significant
deterioration of the average spot rate (USD1.38 to the Euro vs. USD1.32) on
sales which are naturally hedged (sales and purchases in the same currency).

EXECUTIVE COMMENTARY

CEO Jean-Paul Herteman commented:

" Safran recorded first quarter revenue in line with our annual forecast of
broadly stable sales in 2010. As expected, the aerospace market remained
volatile in the first three months of the year. However we believe that
improvements are definitely on the horizon: renewed traffic growth for
passenger and freight, aircraft manufacturers plans to increase narrowbody
airplanes production rates in outer quarters and a return to service of a
significant number of CFM56-equipped aircraft.

Based on the performance for the first quarter of the year and current positive
trends in our markets, we con firm our full-year guidance for 2010 and our
renewed confidence in our outlook for 2011 and beyond. "

BUSINESS COMMENTARY

* Aerospace Propulsion
Revenue for the first quarter of 2010 was down 1.7% at Euro 1,311 million, and
in fact fairly stable on an organic basis (-0.4%), compared to the year-ago
period. Revenue evolution was driven by a higher pace of CFM56 and space engines
deliveries, as well as a fast-growing aftermarket activity in both military
engines and high-thrust recent civil engines. It was offset by a mildly adverse
currency impact, lower helicopter engine deliveries and CFM56 spare parts
revenue compared to an exceptionally high first quarter last year.

OE CFM56 engine deliveries were up 8% at 324 units compared to 301 units in
first quarter 2009 which represented a low volume base following the Boeing
strike. CFM56 orders saw a robust first-quarter 2010 at 282 units. OE
high-thrust engines deliveries were up 4% driven by the commercial success of
the GE115 engine that powers the B777 aircraft. OE deliveries were slightly down
in both military and helicopter engines.

For the first quarter 2010, service revenue share remained stable at 48% of
Aerospace Propulsion sales, with a robust contribution from military, as well as
from high-thrust recent civil engines. Worldwide CFM International spare parts
revenue was down 25% in USD terms, but compared to a very strong first quarter
2009.

With international traffic growth in the high single digits for passenger and in
the mid twenties for freight in first-quarter 2010, the total number of grounded
planes equipped with CFM56 engines reduced from 468 at end of December 2009 to
416 at the end of March 2010, confirming a return to active service of a
significant number of CFM56-equipped aircraft during the quarter.

* Aircraft Equipment
The Aircraft Equipment segment reported first-quarter 2010 revenue of Euro 633
million, down 9.6%, or 6.5% lower on an organic basis, compared to the year-ago
period. The decline in revenue was primarily attributable to a continuing
decline starting in second-quarter 2009 of the business and regional jet
segments which impacted the nacelle, landing system and harnessing businesses.
The nacelle activity recorded a significant drop in small nacelles deliveries
(down 38%), as well as lower deliveries of A380 nacelles (9 units in the first
quarter 2010 compared to 19 nacelles in the year-ago period) due to aircraft
delivery slippages. A volume drop of 26% in landing systems deliveries, notably
due to a weak business jet segment, was recorded over the period. These impacts
were partially mitigated in first-quarter 2010 by a solid performance in
services (landing gear, brakes, wheels) in both military and civil activities.

For the first three months of 2010, service revenue share increased to 34% of
Aerospace Equipment sales, benefiting from a strong contribution from landing
gear and carbon-brakes systems.

* Defence
First quarter 2010 revenue was up 2.9% at Euro 245 million, showing 3.7% organic
growth, compared to the same period last year. The performance was mainly driven
by 2-digit growth in the Optronics activity on the basis of a robust order
backlog (Felin soldier integrated equipment suites, long-range infra-red
goggles). This trend was partly mitigated by a mild decline in the Avionics
activity with less volume in navigation programs.

* Security
The Security activity reported three-month 2010 revenue of Euro 223 million, up
9.3% on a reported basis, which was partly due to the consolidation of Printrak
and GE Homeland Protection. Organic slowdown of 17.5% was registered as a result
of the expected phasing of certain long-term government contracts in the
Identification activity, notably the contract related to the electoral census of
the population for the Ivory Coast and the passport contract in France. The
smart cards activity recorded slightly growing revenue driven by a healthy
volume increase in the banking and telecommunication market segments.

UPCOMING EVENTS

Annual General Meeting  May  27, 2010
H1 2010 results         July 28, 2010

                                * * * * *

Safran will host today an audio webcast for analysts and investors at 8:00 a.m.
Paris time (7:00 a.m. London), which can be accessed at [phone] from
France and at [phone] from other countries. A digital replay will be
available until July 20, 2010 at [phone], [phone] or
[phone]; access code is 317008#.

The press release is available on the website at www.safran-group.com.

                                * * * * *

KEY FIGURES

First quarter revenue     First   First   % change % change
(In Euro million)        quarter quarter             organic
                          2009     2010
Aerospace Propulsion     1,334    1,311     (1.7)%   (0.4)%
Aircraft Equipment         700      633     (9.6)%   (6.5)%
Defence                    238      245      2.9%     3.7%
Security                   204      223      9.3%   (17.5)%
Holding                     11       14      n.m.     n.m.
Total revenue            2,487    2,426     (2.5)%   (3.0)%

2009 revenue by quarter  First   Second  Third  Fourth   Full
(In Euro million)       quarter quarter quarter quarter  year
                         2009     2009    2009    2009   2009
Aerospace Propulsion    1,334    1,435   1,344   1,560  5,673
Aircraft Equipment        700      713     608     746  2,767
Defence                   238      273     216     334  1,061
Security                  204      230     206     264    904
Holding                    11       11      10      11     43
Total revenue           2,487    2,662   2,384   2,915 10,448

NOTES

[1] Adjusted data

To reflect the Group's actual economic performance and enable it to be
monitored and benchmarked against competitors, Safran prepares an adjusted
income statement alongside its consolidated financial statements.

Particularly, Safran recognizes, all changes in the fair value of its foreign
currency derivatives in "financial income (loss)", in accordance with the
provisions of IAS 39 applicable to transactions not qualifying for hedge
accounting.

Accordingly, Safran's consolidated income statement is adjusted for the impact
in financial income (loss) of the mark-to-market of foreign currency
derivatives, in order to better reflect the economic substance of the Group's
overall foreign currency risk hedging strategy:
* revenue net of purchases denominated in foreign currencies is measured using
the effective hedging rate, i.e., including the costs of the hedging strategy;
* the recognition of the mark-to market of unsettled hedging instruments at the
closing date is neutralized

Safran is a leading international high-technology group with three core
businesses: Aerospace (propulsion and equipment), Defence and Security.
Operating worldwide, the Safran group has 54,900 employees and generated revenue
of 10.4 billion euros in 2009. Working alone or in partnership, Safran holds
world or European leadership positions in its core markets. The Group invests
heavily in Research & Development to meet the requirements of changing markets,
including expenditures of 1.1 billion euros in 2009. Safran is listed on NYSE
Euronext Paris and is part of the SBF 120 and Euronext 100 indexes. For more
information, www.safran-group.com

Investor Relations contact:                    Press contact

Pascal BANTEGNIE                               Catherine MALEK
VP, Investor Relations                         Press Relations Manager
Tel [phone]                       Tel [phone]
[e-mail]                     [e-mail]

                                Safran group
                        2, bd du Général Martial Valin
                        75724 Paris Cedex 15 - France
                      
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