The executive board of MTU Aero Engines AG resolved to withdraw the guidance for the financial year 2020. The company’s decision is based on the assessment of market scenarios presently deemed likely, and on a catalogue of expenditure reduction measures. The previous guidance was published on February 20, 2020, already with the reservation to review it during the year due to the COVID-19 pandemic.
Especially due to significant reductions in passenger air traffic and the consequences for airlines, revenues and adjusted EBIT for the financial year 2020 are expected not to grow with a high single digit percentage as forecast. The cash conversion rate, expressing the ratio of free cashflow to net income adjusted, is also likely not to reach the forecast 70% in 2020.
Due to the dynamic of worldwide developments in the context of COVID-19 a specification of expectations with regard to revenues, adjusted EBIT and especially the cash conversion rate, based on the developments of the coming weeks and the resulting consequences for the company’s performance, can only be made at a later point in time.
