in Maintenance

MTU Aero Engines starts 2015 with rise in revenues and earnings

Posted 28 April 2015 · Add Comment

In the first quarter of 2015, MTU Aero Engines AG increased its revenues by 20% to €1.099,5 billion (1-3/14: €913.0 million).

The group’s operating profit rose by 10% to €97.7 million (1-3/14: €89.0 million). The EBIT margin amounted to 8.9%, compared with 9.7% for the same period in the previous year, and earnings after tax  increased by 22% to €68.2 million (1-3/14: €56.0 million). 

“The strong dollar has acted as a forceful tailwind for our revenues and earnings in the first quarter,” said Reiner Winkler, CEO of MTU Aero Engines AG. “This has placed us in a good starting position for the rest of the year. From this basis, we expect to set new records in 2015. We therefore maintain our original forecasts, which we will, as in the past, review with the half-year results.” 

MTU’s revenues increased significantly in both the commercial engine business and the commercial maintenance business, mainly as a result of the favorable U.S. dollar exchange rate. 

Revenues in the commercial engine business increased by 27% to €635.5 million (1-3/14: €500.5 million). The key drivers of those revenues were the V2500 for the Airbus A320 family, the GP7000 engine for the A380, and the GEnx for the Boeing 787 and 747-8. 

The V2500 programme was the main source of revenues in the commercial maintenance business, which saw its revenues climb by 26% from €303.6 million to €383.9 million. 

Revenues in the military engine business followed a downward course, decreasing by 22% to €91.2 million (1-3/14: €116.6 million). The EJ200 Eurofighter engine accounted for the greater part of these revenues. 

At the end of March 2015, MTU’s order backlog stood at €12,681.1 million, which corresponds to a production span of approximately three years. “At €7,715.6 million, our order backlog in the OEM segment reached yet another all-time high,” said Winkler. “This is all the more gratifying given that the new engine programmes, on which we base our future growth, figure prominently in the order backlog.” The majority of these orders are for the V2500 and the Geared Turbofan™ engines of the PW1000G family, especially for the Airbus A320neo. 

MTU’s earnings in the MRO segment made strong progress. Adjusted EBIT for the first quarter grew by 41% to €38.1 million, up from €27.0 million for the same period in 2014, pushing the EBIT margin up one percentage point to 9.9%. In the OEM segment, adjusted EBIT amounted to €58.1 million, compared with €60.8 million in the first quarter of 2014, with an EBIT margin of 8.0% (1-3/14: 9.9%) 

MTU spent €52.0 million on research and development in the first quarter of 2015 (1-3/14: €43.3 million). Company-funded R&D expenditure recognized as an expense in the income statement declined to €15.6 million (1-3/14: €21.7 million) due to higher capitalization for new programs. The Geared Turbofan™ programs and the GE9X for the Boeing 777X were the central focus of MTU’s R&D activities. 

MTU’s free cash flow multiplied, rising from €0.9 million in the first quarter of 2014 to €61.2 million. “We expect to be able to maintain our free cash flow at this level through to the end of the year, and achieve a year-end result close to that of 2014,” said Winkler. 

Capital expenditure on property, plant and equipment in the first quarter of 2015 amounted to €16.4 million, compared with €22.8 million in the same period of 2014. “Now that we have completed our major construction projects for Geared Turbofan™ facilities, we are focusing on new equipment and machinery,” said Winkler.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Ethiopian receives second Boeing 787-9

Ethiopian Airlines has taken delivery of its second Boeing 787-9 Dreamliner fleet on November 21, 2017.

National Aviation Services (NAS) partners with #VisaFreeAfrica

The Kigali Global Shapers has partnered with National Aviation Services for an exclusive sponsor of #VisaFreeAfrica (VFA), a global campaign to facilitate mobility in Africa.

The Range Rover of the skies

No fewer than five Pilatus PC-24 jets are already on order for operations in Africa – and the company has now stopped taking further orders until the first deliveries of the twin-engine aircraft start, expected to be the last quarter of

Air Serv responds to cholera outbreak in southern DRC

Air Serv has deployed an aircraft to the Kasai Province of the Democratic Republic of the Congo (DRC) in response to the cholera epidemic affecting the region.

Kenya Airways Limited advised on financial restructuring

Global law firm White & Case has advised Kenya Airways Limited on its US$2 billion financial restructuring.

Legacy of Ghav's pioneers of peace

For more than a decade, the Ghana Aviation Unit (GHAV) was deployed in Côte d'Ivoire as part of a UN peacekeeping force. Erwan de Cherisey looks at what was achieved and the legacy left by the unit as it finally went home earlier this year.

AfBAC Expo SK2017
See us at
Aviation Africa BT18418Global Aerospace BT28218AfBAC Expo BT2017