Safran’s management has reset expectations during its capital markets day (CMD) by guiding down margin expectations due to the transition from CFM56 engine to LEAP engine production from 2016 through to 2019/20. While this may have surprised the market which reacted to the news by punishing the stock by 6%, the overall presentation showed that from an operational standpoint the key pieces are in place to ensure a smooth ramp-up as well as ensuring that the learning curve effect on unit
15 Mar 2016
Resetting expectations
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Resetting expectations
Safran SA (SAF:WBO) | 0 0 1.4% | Mkt Cap: 37,132m
- Published:
15 Mar 2016 -
Author:
Thomas Picherit -
Pages:
3
Safran’s management has reset expectations during its capital markets day (CMD) by guiding down margin expectations due to the transition from CFM56 engine to LEAP engine production from 2016 through to 2019/20. While this may have surprised the market which reacted to the news by punishing the stock by 6%, the overall presentation showed that from an operational standpoint the key pieces are in place to ensure a smooth ramp-up as well as ensuring that the learning curve effect on unit