ZC FP/SAF FP - Highlights of the Conference Call discussing Safran's FY 2016 results
2H in line with consensus estimates.
Safran’s adjusted recurring operational income was €2.4bn vs. €2.28bn a year ago. Adjusted revenue also increased to €15.78bn from €15.54bn a year ago. For 2017, on a full year basis, Safran expects its reported adjusted revenue to grow between 2% to 3%.
Increased dividend.
Safran will propose a dividend payment of €1.52 per share (increase of 10.1% y-o-y) at the Safran AGM scheduled for 15 June 2017. This will include the €0.69 per share interim dividend payment paid in December 2016.
Companies working on completing the works council processes.
Safran said as of today, Zodiac and Safran are working with the employee representatives and works councils at both Zodiac and Safran. The binding agreements are being finalised subject to the successful completion of the works council procedures. The companies are in the preparatory stage of regulatory and antitrust approvals. The companies are waiting for the completion of the works council procedures to proceed further.
Safran shareholders supportive of Zodiac merger.
Safran’s CEO believes that their roadshow went very well. Their shareholders and investors understand why they are proposing the deal and Safran received very positive feedback from all of them. Globally, his feeling was that it was very positive. When questioned if the shareholders are effectively being held “hostage” as Safran will control Zodiac following the completion of the first stage of the deal, Safran’s CEO declined to comment saying that their objective is to do what is good for the company, shareholders and customers and that their shareholders are mainly in favour of the deal.