PARIS, July 31, 2008 (AFP) - French aero-engineering group Safran reported a 27.5-percent slump in net first-half profits Thursday, blaming the weak dollar, and said it was selling its mobile phone interests to refocus its business.

Safran, a high-technology company which makes aerospace engines, said that the net figure had fallen by 27.5 percent from the equivalent figure last year to 156 million euros (243 million dollars). That was on a 2.8-percent rise in sales to 5.50 billion euros.

The price of Safran shares slumped 7.66 percent to 11.94 euros in mid-morning trading. The overall CAC 40 index was down by 0.12 percent.

The group said that sales rose by 14.8 percent on a basis of constant exchange rates and on a comparable basis.

But the weakness of the dollar had set the sales figure in euros back by 550 million euros, it said.

Operating profit, including a capital gain of 146 million euros from the sale of Ingenico cash terminals, rose to 474 million euros from 381 million euros.

Safran reported a current operating profit of 328 million euros and said the dollar factor had removed 355 million dollars. But the group had compensated for this with an increase in sales of replacement parts and with increased productivity.

Safran also announced the sale of its mobile telephone business Sagem Mobiles to French investment fund Sofinnova at a cost of 220 million euros, including an operating loss in 2008 and accompanying measures.