MTU Aero Engines raises forecast in light of half-year results

MTU Aero Engines AG saw its first-half-year revenues rise by 21% to €2,202.0m in 2015 (1-6/14: €1,815.8m). The group’s operating profit grew by 25% to €212.8m (1-6/14: €170.7m), while the EBIT margin increased from 9.4% to 9.7%. Earnings after tax climbed 33% to €147.2m (1-6/14: €111.0m). The greatest increase in revenues in the first six months of 2015 was registered by the commercial maintenance business, where revenues grew by 32% from €572.9m to €754.2m. The main source of these revenues was the V2500 engine that powers the Airbus A320 family. Revenues in the commercial engine business increased by 21% to €1,251.8m (1-6/14: €1,032.9m). Here, the key revenue drivers alongside the V2500 were the GP7000 engine for the A380 and the GEnx for the Boeing 787 and 747-8. MTU’s commercial maintenance business saw its earnings rise substantially in the first half of 2015, with a 53% increase in adjusted EBIT to €73.5m (1-6/14: €48.0m). The EBIT margin gained 1.3 percentage points, rising to 9.7%.  “The continuing strength of the U.S. dollar has boosted our revenues and earnings these past six months, throughout all business segments. These results have allowed us to revise our full-year forecast in the expectation of setting new records once again in 2015,” said Reiner Winkler, CEO of MTU Aero Engines AG. MTU now foresees revenues of around €4,600m for 2015, instead of the €4,400m predicted at the beginning of the year (2014: €3,913.9m). Adjusted EBIT is expected to rise to around €430m (2014: €382.7m) and adjusted net income to around €295m (2014: €253.3m). The corresponding amounts in MTU’s original outlook were €420m for adjusted EBIT and €285m for adjusted net income.