MTU Aero Engines has exceeded its earnings forecast for the financial year 2010. Operating profit increased by 7 % from €292.3 million in 2009 to €311.3 million, which is higher than the earnings forecast of €310 million that had been revised upward in the course of the year.
Return on sales increased by 0.3 percentage points to 11.5%, demonstrating the company's high level of profitability. MTU's net income of €142.2 million was not only higher than the previous year's figure of €141.0 million, but also above the company's declared target of €140 million. Revenues grew by 4 % to €2.71 billion (2009: €2.61 billion), just under the forecast figure of €2.75 billion. MTU also significantly exceeded its free cash flow target, which had also been revised upward during the year. At the end of 2010, free cash flow amounted to €144.8 million (2009: €120.2 million), 21 % more than the forecast of €120 million.
"The economy recovered perceptibly in 2010, which was a welcome boost for the aviation industry. Thanks to its excellent position in the market, MTU performed very successfully in this environment," said Egon Behle, CEO of MTU Aero Engines Holding. "The market will continue to grow in 2011, and MTU, too, will benefit from that. In fact, both our spare parts business and MRO segment have already started the year well."
The outlook for this year is positive for MTU. 2011 expects to see a further increase in both passenger and freight traffic driven by growth in the Asia-Pacific region and North America, where MTU is a strong player. MTU expects group revenues to rise by around 7 to 8%, with the main growth driver coming from the commercial engine business, with an anticipated 15-20 % increase in sales. The spare parts business is expected to grow by 5-10 %. By contrast, revenues in the military engine business are likely to fall by 10%, while commercial MRO sales are expected to increase by 5-10%. MTU's profitability is set to remain high, with operating profit (EBIT adjusted) and earnings after tax (net income adjusted) weighing in at similar levels to 2010.