Despite widespread market difficulties MTU Aero Engines generated HI revenue of €2.048 billion, versus €2.243 billion for the same period in 2019, which translate into an operating profit of €224.2 million.
“The figures reflect the first effects of the coronavirus pandemic,” said Reiner Winkler chief executive of MTU Aero Engines AG. “A better estimate of the quantitative impact of the coronavirus crisis is now also possible. On Friday, we therefore issued new guidance for 2020.”
MTU now expects to generate revenue of around €4 to €4.4 billion in 2020. In percentage terms, the company anticipates an organic decline in the mid to high twenties in the commercial series production business and in the high twenties in the spare parts business. In the commercial maintenance business, an organic revenue reduction in the low to mid-single-digit percentage range is expected.
The order backlog at the end of the first six months remained high at €18.4 billion. The majority of these orders relate to the V2500 and the Geared Turbofan engines of the PW1000G family, in particular the PW1100G-JM for the A320neo.
The EBIT margin in the OEM business was 15.7%, compared with 24.5% in the same period of the previous year. Commercial maintenance reported half-year earnings of €96.3 million and an EBIT margin of 7.6%, down from 9.5% in the first half of 2019. “The figures reflect the increase in MRO work for Geared Turbofan engines,” said Winkler.