MTU Aero Engines slightly raises forecast
In the first nine months of 2014, MTU Aero Engines AG’s revenues grew by 6% to €2,811.6 million (1-9/2013: €2,659.6 million). The group generated an operating profit1 of €270.9 million (1-9/2013: €267.8 million) and its EBIT margin came to 9.6% (1-9/2013: 10.1 ). Net income2 increased by 5 to €178.3 million (1-9/2013: €169.1 million).
MTU had adjusted its revenue forecast slightly downward from €3,750 million to €3,650 million (2013: €3,574.1 million) on the basis of the half-year figures. The outlook had included a stable adjusted EBIT of around €375 million (2013: €373.1 million) and an adjusted net income in the region of €245 million (2013: €235.7 million).
The increase in group revenues in the first nine months of 2014 is mainly attributable to strong growth in the commercial engine business, where revenues rose by 12% to €1,563.9 million (1-9/2013: €1,402.9 million). The engines that accounted for the largest part of these revenues were the V2500, which powers the Airbus A320, the GP7000 for the Airbus A380, and the GEnx for Boeing’s 787 Dreamliner and 747-8.
Revenues in the commercial maintenance business remained stable at €920.8 million (1-9/2013: €911.8 million). The main source of these revenues was the V2500 engine. “Our third-quarter revenues in the MRO segment were higher than ever before. This means that we have turned the corner and reversed the negative trend that affected revenues in this segment in the earlier part of the year,” added Winkler.
MTU’s order backlog increased by 15% between December 31, 2013 (€9,374.6 million) and September 30, 2014 (€10,747.8 million). The order backlog corresponds to a production workload of approximately three years. These orders mainly relate to the V2500 for the Airbus A320 and the PW1000G family of geared turbofan™ engines for the Airbus A320neo, the Bombardier CSeries, the latest generation of Embraer E-Jets, the Mitsubishi Regional Jet and the Irkut MS-21.
In the first nine months of 2014, MTU’s capital expenditure on property, plant and equipment amounted to €64.3 million, which represents a 30% year-on-year increase (1-9/2013: €49.5 million). The main investment projects concerned machinery to equip the manufacturing facility for geared turbofan™ components and the construction of a new logistics center in Munich, and the further expansion of MTU Aero Engines Polska.