MTU sees lower revenues and profits
MTU Aero Engines reported lower revenues and profits for 2009, but claimed it has fully met its business forecasts for the year. The outlook is stable, the company said at its annual press conference today.
MTU reported revenues of € 2,610.8 million (2008: € 2,724.3 million), in line with the targeted level of around € 2.6 billion. MTU generated an operating profit (EBIT adjusted) of € 292.3 million (2008: € 331.0 million), which is slightly higher than the upwardly revised forecast of approximately € 290 million. Net income amounted to € 141.0 million, compared with a targeted € 140 million for 2009 and a reported result of € 179.7 million in 2008.
“The past year presented MTU with a host of major challenges. The global economic and financial crisis, coupled with the persistently strong euro and reviving oil prices, has left its mark on our industry,” summed up Egon Behle, CEO of MTU Aero Engines Holding AG. “This being so, I am all the more delighted that MTU achieved a solid performance in 2009, meeting all quantitative targets. We have laid the foundations for a stable development in the coming year.”
Revenues in 2009 were impacted by the slower market demand, with the airlines reporting a marked downturn in the volume of passenger and freight traffic. Revenues in the commercial engine business amounted to € 1,053.7 million, compared with € 1,146.3 million in 2008. The highest revenues from sales of new engines and spare parts were attributable to the V2500 engine that powers the Airbus A320 family, the PW2000 used to equip the Boeing C-17, and the CF6-80C for the Boeing 747 and Airbus types A310 and A330.
MTU saw an improvement in the military engine business, where revenues increased by 7% to € 532.0 million (2008: € 496.6 million), based largely on the Eurofighter EJ200 engine and the Tornado’s RB199.
The commercial maintenance business produced revenues of € 1,057.6 million in 2009; the figure for 2008 was € 1,113.0 million. The highest contribution came from the V2500 for the Airbus A320 family.
MTU’s order backlog at December 31, 2009 amounted to € 4,150.9 million, an increase of 3% over the previous year (Dec. 31, 2008: € 4,015.7 million). This is equivalent to 1.6 times annual revenues.
The aviation market is expected to stabilize in 2010. Passenger and freight traffic will gradually start to revive, as will the business jet sector. This recovery will be driven principally by the Asia-Pacific region and the Middle East. MTU is well positioned in this market environment, thanks to its business model and local presence in the major growth markets.
In 2010, the company expects to generate revenues on the level of last year. Operating profit (EBIT adjusted) and net income are also expected to develop along stable lines. MTU’s ongoing investments in the future again involve high research and development expenditure in connection with new engine programs. Despite this, MTU anticipates a free cash flow in the order of € 100 million for 2010.