MTU Aero Engines optimistic about 2016, projects another record year for revenue

MTU Aero Engines CEO Reiner Winkler reported (16-Feb-2016) the company has an optimistic outlook for 2015, with market indicators "positive all round, allowing us to set the bar for 2016 another notch higher." 2016 outlook highlights:

• Revenues: EUR4.6 to EUR4.7 billion (2015: EUR4,435.3 million), taking exchange rate effects into account;
• • Commercial series-production engine revenue: Increase by a mid-single-digit percentage;
  • Spare parts revenue: Increase by a low-to-mid-single-digit percentage;
  • Military engine business revenue: Stable;
  • Commercial maintenance revenue: High-single-digit growth rate.
• EBIT: Stable (2015 adjusted EBIT: EUR440.3 million;
• EBIT margin: 10%, stable;
• Earnings after tax: Growth in line with adjusted EBIT (2015 adjusted net income: EUR306.9 million).

MTU stated it stands to benefit from the aircraft industry's present high order backlog by virtue of its partnership in engine programs for these types of aircraft. Moreover, the engines in MTU's maintenance portfolio are responsible for an above-average share of growth in the MRO market. Mr Winkler commented that this means MTU can expect to see "continuing strong demand, especially for geared turbofan engines", and the company is "extremely well placed in the maintenance sector, not only as an independent service provider but also as a member of the OEMs' MRO networks and as a partner to airlines". [more - original PR]