MTU Aero Engines presents nine-month results and raises earnings forecast

In the first nine months of 2017, MTU Aero Engines AG saw its revenues increase by 10% to €3,745.4m (1-9/2016: €3,401.3m). The group’s operating profit increased by 14% from €393.8m to €450.6m, improving the EBIT margin from 11.6% to 12.0%. Earnings after tax rose by 17% to €320.4m (1-9/2016: €273.4m). “Based on these results and the positive effects on earnings that we now expect to derive from our product mix, we are able to raise our earnings forecast for this year,” said Reiner Winkler, CEO of MTU Aero Engines AG. “By year-end, we now expect adjusted EBIT to grow to around €600m and net income to reach around €420m.” MTU’s original forecast was adjusted EBIT of around €560m (2016: €503.0m) and adjusted net income of around €390m (2016: €345.4m). MTU has aligned its revenue forecast to reflect exchange rate changes and now expects to generate revenues of around €5.1bn instead of around €5.3bn (2016: €4,732.7m).
The strongest increase in MTU’s revenues in the period January to September 2017 was attributable to the commercial maintenance business, where revenues grew by 26% from €1,368.3m to €1,727.5m. The main source of these revenues was the V2500 engine for the A320 family and the CF34 corporate jet and regional aircraft engine. Revenues in the commercial engine business have increased by 5% from €1,738.3m to €1,821.4m. Revenues in the military engine business decreased by 24%, from €356.8m to €271.5m. The EJ200 Eurofighter engine was the main source of these revenues. At September 30, MTU had an order backlog of €12,129.0m, compared with €14,172.2m at December 31, 2016. The majority of these orders relate to the V2500 and the Geared Turbofan™ engines of the PW1000G family, in particular the PW1100G-JM for the A320neo.