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By Tim Hepher and Cyril Altmeyer
PARIS, April 26 (Reuters) - France's Safran on Tuesday posted a slightly higher-than-expected 7.8 percent increase in first-quarter revenue to 4.24 billion euros ($4.77 billion), led by double-digit aero engine and security gains, and reaffirmed full-year targets.
Revenue grew 6.7 percent on a like-for-like basis, while civil aftermarket revenue rose 8.6 percent in dollar terms, in line with its goals for the year.
In a note, U.S. brokerage Sanford C. Bernstein called the results, which showed growth in all divisions except defence, a "solid start to the year".
Safran, which partners General Electric in building engines for Airbus and Boeing medium-haul airliners through their CFM International joint venture, said its new LEAP engine remained "on track and on time".
Chief Executive Philippe Petitcolin said the engines would meet specifications, which include fuel savings of 15 percent, as soon as they enter service, first for Airbus and then for Boeing jets.
He declined to comment on a recent report that the company was considering making an offer for smaller aerospace supplier Zodiac Aerospace.
"We never comment on market rumours," he told reporters in a conference call.
On Friday, shares in aircraft seats and equipment maker Zodiac rose as much as 14.8 percent after Bloomberg News reported Safran was in the early stages of evaluating a bid.
Reuters reported a source close to Safran as saying an offer for Zodiac was, however, "not on the agenda".
Petitcolin said Safran expected to realise a gain of "tens of millions of euros" from its agreement last week to sell its Morpho Detection unit to UK engineering firm Smiths Group .
The French company expects to complete a strategic review of its remaining security activities this year.
Safran said a final deal on the second phase of a space launchers joint venture with Airbus Group was expected "in the coming weeks".
It reported no new problems with its delayed Silvercrest business jet engine and said a temporary fix for separate gearbox problems that delayed deliveries of the Airbus A400M military transporter would be introduced in coming weeks.
A permanent solution for difficulties with the gearbox supplied by Italy-based GE subsidiary Avio Aero will follow in coming months, Petitcolin said.
Shares in Safran closed at 62.35 euros on Monday, down 1.6 percent so far this year.
(Reporting by Tim Hepher and Cyril Altmeyer; editing by James Regan and Jason Neely)