MTU stands by 2012 targets as commercial arm outperforms

London
Source:
This story is sourced from Pro
See more Pro news »

Commercial engine MRO has been the main revenue driver for MTU Aero Engines this year, followed by the company's civilian manufacturing business. The military sector also showed around 8% more sales in spite of its uncertain outlook.

The Munich-based powerplant specialist registered turnover of €2.47 billion ($3.22 billion) during the first nine months of 2012, up 19% over the same period last year. Earnings before interest and tax (EBIT) grew 13% to €278 million, while net income increased 17% to just over €173 million.

Operating margin increased 0.6 percentage points to 11.9%.

MTU expects full-year revenues of about €3.3 billion, up 12.5% over 2011. EBIT should rise to €370 million and net income to €225 million.

The company's commercial engine MRO arm grew 25% to just over €1 billion, with the International Aero Engines (IAE) V2500-family being the main driver. EBIT in this area rose nearly 30% to €85.6 million.

The commercial OEM business increased 18% to €1.14 billion. MTU says that the 5 percentage point increase in its IAE share to 16% in June 2012 has thus far created around €50 million in additional revenues.

In the military arena, MTU's turnover rose 8% to €348 million, with the Eurojet EJ200 for Eurofighter Typhoon being the main driver. The manufacturer has said before, however, that the defence segment offers no long-term growth prospects, as there are no equivalent follow-up OEM programmes on the horizon beyond the EJ200 and Europrop International (EPI) TP400-D6 for Airbus A400M military transport.

Free cashflow fell nearly 40% to €66.3 million. This is partly due to higher investments, including the construction of a blisk production facility in Munich that is to be opened before the end of the year.