Safran CEO says mobile phone business not for sale; keeps FY margin target |
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Tue, 16 Jan 2007 12:10
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PARIS (AFX) - Safran does not plan to sell its mobile phone business and is maintaining a target of around 4 pct for its full-year operating margin despite better-than-expected sales, CEO Jean-Paul Bechat said.Speaking at a press conference, Bechat said Safran has reigned in expansion in mobile phones but has never said it would sell the operation.The company reported 2006 sales of 11.256 bln eur, up 6.4 pct on the previous year, which Bechat described as a 'good sign' following a profit warning in mid-December, when Safran lowered its operating margin forecast to 4 pct from 5.5-6 pct previously.But the Communications division, which includes the mobile business, saw a 7.5 pct slide in full-year sales to 2.17 bln eur.To reverse this decline, Safran has refocused its mobile phone activities on targeted offers with a smaller geographical spread and lower R&D spending, Bechat explained, instead of attempting to cover the market in the face of bigger players like Nokia.paris@afxnews.comAFP /gt/twCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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