Safran SA expects orders for its CFM56 aircraft engine to reach a record 1,900 to 2,000 units this year, Le Journal des Finances said, citing an interview with Chief Executive Officer Jean-Paul Herteman.
Raw materials account for about 10 percent of Safran’s product costs, and higher commodity prices haven’t had an “immediate impact” on profitability because of the company’s hedging policy, Herteman told the newspaper. The company has hedged for dollar-exchange rate risks next year, 2012 and 2013 at “more favorable exchange rates” than in 2010, the newspaper cited Herteman as saying.
Safran builds the CFM56 engine, used to power Boeing Co. 737 models and the Airbus SAS A320 family, in a joint venture with General Electric Co.
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