MTU Aero Engines has good 2008 results
MTU reported a 6% increase in revenues to €2,724.3 million (2007: €2,575.9 million), thereby exceeding the upwardly revised forecast of €2,650 million that had been published in the course of the year. Operating profit (EBITDA adjusted) improved by 3% from €392.9 million to €405.7 million, which is higher than MTU's forecast of approximately €400 million.
Net income progressed at an even more pronounced rate, increasing by 17% from €154.1 million in 2007 to €179.7 million, thereby reaching the forecast level of €180 million. Free cash flow, at €123.6 million (2007: €131.7 million), was significantly higher than the forecast €100 million.
“In this anniversary year, I am particularly delighted to be able to present these results, which are the best that MTU has ever achieved in its 75-year history,” stated Egon Behle, CEO of MTU Aero Engines Holding AG. “2008 was a record year for MTU in many respects. As well as more than meeting our quantitative targets, we have also taken strategic measures that point MTU towards an even better future: In 2008, we engaged in a greater volume of new program agreements than in any previous year. This forward-looking strategy and the opportunities it offers give me every confidence that MTU will continue to impose itself on the market, despite the increasingly difficult challenges that this involves.”
The volume of both passenger and freight traffic is expected to decline in 2009, with a consequential impact on deliveries of new aircraft and on aftermarket sales in the engine business. Despite this difficult market environment, MTU is nevertheless well positioned to generate revenues of around €2,800 million in 2009, which corresponds to the previous year's level. This forecast is based on the assumption that revenues in the military engine business will remain stable. MTU expects to see a significant decrease in sales of engine components and spare parts for business jets, and does not expect revenues from engines for commercial airliners, in any category, to grow with respect to 2008. Overall, MTU's spare parts business is expected to generate slightly lower revenues.