MTU Aero Engines Again at Record Level in 2013

MTU’s commercial maintenance business expects to see a growing demand for maintenance services for the GE90 and V2500 programs. In 2014, group revenues are expected to rise to around €3,750 million (2013 calculated on a comparable basis: €3,574.1...


Munich, February 18, 2014 – MTU Aero Engines AG has built on the record year of 2012 with its business figures for 2013: MTU improved its all-time high in revenues to €3,741.7 million (2012: €3,378.6 million), and is thus fully in line with its revenue forecast of around €3.7 billion. Earnings matched the record level of 2012: At €377.3 million, operating profit[1] clearly met its target of around €375 million (2012: €375.2 million). The return on sales amounted to 10.1% compared with 11.1% in 2012. At €232.1 million, MTU generated earnings after tax[2] of around €235.0 million as planned (2012: €234.0 million).

“Revenues have fully met our expectations. We achieved the targets updated at mid-year for our results, which shows that MTU remains a strongly profitable enterprise”, concluded Reiner Winkler, CEO of MTU Aero Engines AG, speaking at the annual press conference on Tuesday, February 18, 2014, when the provisional annual financial statements were presented.

Outlook for 2014

In the opinion of experts, growth in air passenger traffic will settle at a high level in 2014. Particularly the Asia-Pacific region, the Middle East, and Latin America have persistently good growth prospects. “Due to the upcoming full-scale production of the GEnx and the increase in deliveries of the V2500 program, the trend toward strong new engine business in 2014 will continue”, said Winkler. “Our new engine business will probably grow at a faster rate than the much more profitable spare parts business in 2014. We are thus paying particular attention to our revenue and cost structures and took measures in 2013 to further improve them.” MTU expects its revenues in the new engine business to increase by around 10% in U.S. dollar terms. Commercial spare parts sales are expected to rise by a mid single-digit percentage figure expressed in U.S. dollars, while MTU anticipates a decline of around 10% in revenues in the military engine business. MTU’s commercial maintenance business expects to see a growing demand for maintenance services for the GE90 and V2500 programs. Revenue growth in this segment will be within the mid to high single-digit percentage range, expressed in U.S. dollars. In 2014, group revenues are expected to rise to around €3,750 million (2013 calculated on a comparable basis: €3,574.1 million). Operating profit (adjusted EBIT, 2013 calculated on a comparable basis: €373.1 million) and earnings after tax (adjusted net income, 2013 calculated on a comparable basis: €229.8 million) are expected to remain stable. These forecasts take into account that from 2014 onward, MTU Maintenance Zhuhai will no longer be proportionately consolidated but accounted for according to the equity method, in accordance with IFRS requirements. The comparative data for 2013 will be adjusted to eliminate this effect. In 2014, research and development expenditure will probably remain at the same level as in 2013.

Significantly higher revenues in the OEM segment

The growth in group revenues in 2013 is primarily due to strong growth in the commercial engine business, where revenues increased by 18% from €1,603.1 million in 2012 to €1,891.3 million. The growth drivers were the V2500 for the Airbus A320 family, the GP7000 engine that powers the Airbus A380 and the GEnx engine for the Boeing 787 Dreamliner and the Boeing 747-8.

At €500.7 million, revenues in the military engine business matched last year‘s level (2012: €503.3 million), with the key revenue driver being the EJ200 Eurofighter engine.

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