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MTU sees growth across all activities during first quarter

German engine specialist MTU has confirmed its full-year financial targets after reporting a 7.1% rise in first-quarter adjusted operating profit, to €188 million ($211 million).

Revenue grew 11.3% to €1.13 billion in the three months ended 31 March, says Munich-based MTU.

Chief executive Reiner Winkler foresees "continued profitable growth in all operating segments" for the full year.

MTU's manufacturing business was the largest contributor to operating profit, with adjusted EBIT of €131 million, up 5.8%.

However, the manufacturing segment's EBIT margin declined 3.5 percentage points to 26.6%, which chief financial officer Peter Kameritsch attributes to the ramp-up of the Pratt & Whitney PW1000G programme.

MTU is a shareholder in the geared-turbofan programme and is responsible for assembly of around a third of all PW1100Gs. The engine is an option on Airbus A320neo-family aircraft.

Revenue in MTU's commercial engine manufacturing business grew 21% to $386 million, while military turnover increased 15% to €105 million.

Commercial maintenance activities generated more than half of the group's revenue – €655 million, up 6% – while the segment's adjusted EBIT grew 10% to €56.8 million.

Kameritsch states that MRO revenue growth was "slowed by changes in the ordering and billing process" for International Aero Engines V2500 maintenance services. But he notes that "demand remained unabated" for aftermarket support.

For the full year, MTU is targeting revenue of €4.7 billion, compared with €4.6 billion in 2018.

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