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​Maintenance lifts MTU's 2018 earnings

Maintenance operations were the main driver of a 17% rise in MTU's adjusted operating profit, to €671 million ($762 million), in 2018.

The German engine subassembly manufacturer and MRO provider says that adjusted EBIT in its commercial maintenance business grew 23%, to €240 million, while the segment’s revenue increased at the same rate, to €2.8 billion.

Adjusted EBIT in the OEM business increased 14%, to €431 million, as revenue rose 17%, to €2.03 billion, of which €1.6 billion was commercial (up 24%) and €431 million military (down 3.1%).

Total revenue increased 17% to €4.57 billion.

While military turnover declined last year, MTU sees it rising 10% in 2019, based on potential follow-up Eurofighter Typhoon sales to the German air force and engineering activities for the planned Franco-German future combat air system (FCAS).

MTU chief executive Reiner Winkler said during a results briefing in Munich today that the company would this year – together with Safran, which has also been selected to power the future fighter – start a demonstrator development programme for the FCAS engine.

For 2019, MTU predicts overall revenue of €4.7 billion.

Commercial OEM activities are set to become the fastest-growing segment, with a revenue growth rate in the low teens, the company says.

Spare-parts revenue is forecast to increase by mid-to-high single digits, while the maintenance business is set to grow at a high single-digit rate.

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