By Cristina Roca
Safran SA now expects CFM International, its joint venture with General Electric Co., to deliver less than 1,000 LEAP engines this year as the coronavirus hits new plane deliveries, the company said Thursday following its annual general meeting.
The French aerospace-and-defense company said its April revenue fell to half of what it was during the same period a year ago, with the effects of the coronavirus being felt more deeply than the previous month.
Free-cash-flow generation was positive over the first four months of the year, Safran said.
Safran, which was already facing headwinds from the shutdown of Boeing Co.'s 737 MAX plane before the coronavirus started to hit its business, said it has stepped up an adaptation plan. It is moving to furlough 35% of its employees and slashing its costs and investments for the year, the company said.
"The Group's aim is to significantly reduce its costs and to lower the breakeven point for its businesses," it said. "The Group's current baseline scenario is for a gradual recovery."
Safran shareholders approved all resolutions submitted to Thursday's annual meeting, including a decision not to pay a dividend for 2019.
Write to Cristina Roca at email@example.com; @_cristinaroca