MTU Aero Engines provides more precise guidance at half-year

MTU Aero Engines AG generated revenues of €2,299.2m in the first six months of 2016, an increase of 4% (1-6/15: €2,202.0m. The group’s operating profit improved by 19% to €254.1m (1-6/15: €212.8m), raising the EBIT margin for the six-month period from 9.7% to 11.1%. Earnings after tax increased by 20% to €176.1m (1-6/15: €147.2m), in line with operating profit. “The successful results for the first half year have enabled us to provide a more precise outlook to the end of 2016,” said Reiner Winkler, CEO of MTU Aero Engines AG. With around €4.7bn in 2016, revenues for the MTU group are now expected to reach the upper end of the originally forecast range of between €4.6 and 4.7bn. The company expects to achieve an operating profit of around €480m (adjusted EBIT, 2015: €440.3m). The original outlook was for a stable EBIT margin of around 10%. Earnings after tax are expected to reach around €330m (adjusted net income, 2015: €306.9m) – a growth rate in line with operating profit. These forecasts are based on an assumed exchange rate of U.S. $1.10 to the euro.