Safran SA - Company Strategy & Performance Analysis

Safran S.A. (Safran) is a French multinational aircraft engine, rocket engine, aerospace-component, defense, and security company, formed by a merger between the aircraft, rocket engine and aerospace component manufacturer SNECMA and security company SAGEM in 2005. It is an international high-technology group and a tier-1 supplier of systems and equipment for aerospace, defense and security. Products developed by the company include helicopter turbines, mechanical, hydro-mechanical and electromechanical equipment for the aeronautics industry; military avionics and aeronautic system engines and parts for civil and military aircraft; defense and security equipment; navigation equipment; optronic systems; biometric identification systems; and secure transaction terminals.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading defence and security companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore the reports allow benchmarking company performance through the provision of key performance indicators including: arms sales, order backlog, and contracts.

Key Highlights

Demand for Safran’s aircraft equipment contributing to its profits:

The company’s aircraft equipment business is considered a major strength. In 2016, it reported revenue of US$5,688.1 million, registering a growth of 3.7% over 2015. Growth was attributed to deliveries for the A350 (landing gear, wiring) and the A320 (thrust reversers, landing gear, wiring), as well as a modest increase in the shipment of the 787 (landing gear, wiring). The services market posted an annual growth rate of 10.5% owing to the sale of carbon brakes. Recurring operating income increased by 21.2% over 2015 to reach US$626.8 million in FY2016. An increase in sales volume for aftermarket activities, coupled with strong cost reduction and productivity efforts, led to larger profits.

The company’s market leading position helps it to gain a competitive edge:

Safran’s market leading position in the aerospace, defense and security markets provides it with an edge over its competitors. It is the leading manufacturer of single-aisle commercial jet engines, landing gear, wheels, and carbon brakes for mainline jets with over 100 seats, helicopter turbine engines, and flight controls in the world. It is dominant in other areas too, including cryogenic rocket engines and solid rocket motors; military aircraft engines and optronics systems; and tactical drones and inertial navigation systems. Safran delivers innovative solutions for navigation, optronics, tactical information and stabilization on fighters and transport aircraft, helicopters, warships and submarines, armoured vehicles, and artillery systems.

The company aims to provide higher quality products and services:

In order to enhance the quality of its products and services, Safran merged its Quality and Progress Initiative departments, with that of Safran Consulting, to form a single Quality and Progress department. Safran plans to compete through its Factory of the Future program. In addition to this, the company used Lean Sigma, with Green Belts, Black Belts and Master Black Belts to transform its structure and standardize its project management approach. These measures led to increased customer satisfaction and continuous improvement in performance.

Scope

- Company Snapshot - details key indicators and rankings of Safran SA in terms of arms sales and market share in the company’s key markets.

- Company SWOT Analysis - outlines Safran SA’ Strengths and Weaknesses, and weigh Opportunities and Threats facing the company.

- Growth Strategies - understand Safran SA’ corporate goals and strategic initiatives and evaluate their outcomes.

- Company Performance and Competitive Landscape - analyse the company’s performance by business segment compared to other players across key markets on metrics such as arms sales.

- Key Developments - showcase Safran SA’s significant recent corporate events, changes, or product initiatives.

Reasons to buy

- How does Safran SA rank among Defense and Security service providers in the Europe and globally?

- What are Safran SA’ main growth strategies and how successful has the company been at implementing them?

- How has the company performed since 2013 in terms of arms sales, and order backlog?

- How has Safran SA performed in comparison to competitors such as Thales, Huntington Ingalls Industries, Inc and Almaz Antey?

- What is Safran SA’ strengths and weaknesses and what opportunities and threats does it face?

Table of Contents

Table of Contents

Company Snapshot 3

CompanySWOT Analysis 9

Growth Strategies 15

CompanyPerformance 20

Competitive Landscape 27

Deals 30

Key Developments 34

ICT Spending Predictions ...

Table of Contents

Company Snapshot 3

CompanySWOT Analysis 9

Growth Strategies 15

CompanyPerformance 20

Competitive Landscape 27

Deals 30

Key Developments 34

ICT Spending Predictions 37

Financial Summary 40

Appendix 42

List of Tables

List of Figures

    Pricing

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