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About Engineered Arresting Systems Corporation

Safran manufactures engines for civil and military aircraft and serves customers in the space and defense and aircraft propulsion and equipment markets. The company operates through several divisions and makes engines and nacelles (the outer casing of the engine), aircraft interiors, electrical systems, and navigation systems. It sells its own products directly to customers and also works with original equipment manufacturers. In addition, Safran manufactures drones, launch vehicles, and satellite propulsion systems and equipment and provides aftermarket and engineering services. The company operates at close to 370 sites in more than 25 countries worldwide. Its engine business generates about half its sales and aircraft equipment represents about one-fourth. Major customers include Airbus, Boeing, Dassault Aviation, and ArianeGroup.

Financial Performance

After three years of revenue hovering at a little over €16 billion, Safran saw a 32% increase in sales in 2018 attributed to its acquisition of Zodiac Aerospace early in the year.

Sales in 2018 reached €21.0 billion compared with €16.4 billion the previous year. Sales were up 10% organically, excluding sales from Zodiac. Higher sales are attributed to increased production of the company's LEAP engine. Deliveries of the engine have skyrocketed from 77 units in 2016 (the first year of production) to more than 1,100 units in 2018.

Net income plummeted to €1.3 billion in 2018, a decrease of 72% from €4.6 billion in 2017, primarily as a result of €830 million in gains from the sale of its security business in 2017 and higher income tax expense.

Cash at the end of fiscal 2018 was €4.9 billion, an increase of €2.8 billion from the prior year. Cash from operations contributed €2.1 billion to the coffers, while investing activities used €282.0 million, mainly for acquisitions. Financing activities provided €591.0 million primarily from borrowings.

Strategy

Safran in 2018 acquired interior equipment manufacturer Zodiac Aerospace and in 2019, the ElectroMechanical Systems business from Collins Aerospace (formerly part of Rockwell Collins), consisting of actuators and pilot controls for aircraft. Bolstered by these businesses, Safran is able to offer a more comprehensive portfolio of products to customers in new and existing markets.

Safran believes passenger demand is going to double over the next 20 years and that world military expenditure will increase with the need for customized and differentiated equipment. The company is making bigger investments in research and development centered on new manufacturing technologies such as engine hybridization (for helicopters), additive manufacturing, and digital technologies. 

In commercial aviation, the manufacturer is ramping up production of its hugely successful LEAP engine program, where it expects to deliver 2,000 units by 2020. LEAP engines are used in short- and medium-haul aircraft and are the successor to Safran's CFM56 engine, which it makes through CFM International, a 50/50 joint venture with General Electric. In military aircraft engines, the company aims to capitalize on the New Generation Fighter (NGF) project, an agreement between France, Germany, and Spain to develop the Future Combat Air System (FCAS) fighter jet—Europe's own fighter jet program.

Engineered Arresting Systems Corporation

2550 MARKET ST
Upper Chichester, PA 19014-3426
Phone: 1 (610) 494-8000

Stats

Employer Type: Privately Owned
Executive Vice President and President of Commercial Systems Division: Peter Mahal
Vice President, Engineering: Rich Orner
Research and Development Manager: Kirk Schneider
Employees (This Location): 116
Employees (All Locations): 140

Major Office Locations

Upper Chichester, PA

Other Locations

Logan Township, NJ
Oslo, Norway