In the first nine months of 2020, MTU Aero Engines AG generated revenue of €2,956.6 million (1-9/2019 €3,403.7 million). The operating profit was €310.8 million, compared with €557.7 million in the prior-year period. The EBIT margin was 10.5% (1-9/2019: 16.4%). In line with adjusted EBIT, adjusted net income dropped from €391.7 million to €219.2 million.
“Based on these results, we can now provide a more precise guidance for the full year,” said Reiner Winkler, CEO of MTU Aero Engines. “We now assume that revenue for the year will be between €4 and €4.2 billion. Our adjusted EBIT margin is likely to be around 10%, which is at the upper end of the range forecast to date.” At the end of July, MTU forecast a broader revenue range of €4 to €4.4 billion and assumed an adjusted EBIT margin of between 9% and 10%. The company expects adjusted net income to develop in line with adjusted EBIT.
MTU registered a substantial drop in revenue in the first nine months of 2020 especially in the commercial engine business, where revenue fell from €1,137.8 million to €850.2 million. The highest revenue generators were the PW1100G-JM for the A320neo and the V2500 for the classic A320 aircraft family. Over the year as a whole, the organic decline in revenue is likely to be in the mid-to-high twenties in the commercial series production business and the high twenties in the spare parts business.
Revenue from the commercial maintenance business was €1,866.3 million in the first nine months of 2020 compared with €1,995.9 million in the same period the previous year.
The order backlog at the end of the quarter was €18.8 billion (December 31, 2019: €19.8 billion). “This still represents a high level and arithmetically secures our capacity utilization for more than four years,” said CFO Peter Kameritsch. The majority of these orders are for the V2500 and the Geared Turbofan™ engines of the PW1000G family, especially the PW1100G-JM. (€1.00 = US$1.18 at time of publication.)
