Safran has confirmed that it expects orders for the CFM56 aircraft engine used to power 737 aircraft, to reach a record 1,900 to 2,000 units this year. The engine type is built by Safran in a joint venture with General Electric.
Jean-Paul Herteman, chief of Safran stated that the company’s hedging strategy meant it was insulated from higher commodity prices, which account for about 10% of its product costs. Herteman said Safran has hedged for dollar-exchange rate risks next year, 2012 and 2013 at “more favorable exchange rates” than in 2010.