MTU expects full-year 2021 revenue to be higher than predicted

In the first six months of 2021, MTU Aero Engines AG generated revenue of €2,004 million; in the first half of 2020, revenue was €2,049 million. The operating profitwas €190 million (1-6/2020: €224 million) and the adjusted EBIT margin was 9.5% (1-6/2020: 10.9%). Net income developed in line with operating profit and was €135 million, compared with €161 million in the prior-year period. “MTU continued to operate profitably in the first half of this year. Based on this performance and the improved visibility up to year-end, we can now give a more precise guidance for the 2021 fiscal year,” said Reiner Winkler, CEO of MTU Aero Engines AG. “We are somewhat more optimistic than previously about the commercial series business and the military business but have slightly reduced our forecast for commercial maintenance. Overall, we are slightly increasing the lower end of our target ranges for both revenue and earnings.”

MTU now expects full-year revenue to be around €4.3 to €4.5 billion. Previously, the company’s guidance was for a revenue range of between €4.2 and €4.6 billion. Revenue should develop better than previously expected in the military business and the commercial series business: revenue from the military business should rise in the mid to high single-digit percentage range. In the commercial series business, MTU expects growth in revenue to be in the low to mid-single-digit percentage range. So far, the company only expected a slight revenue increase in both business units. The expectations for revenue in the commercial spare parts business are unchanged, with the company forecasting a rise in the low to mid-single-digit percentage range. Revenue from commercial maintenance should increase by between 15% and 20% in 2021; previously, MTU assumed growth of between 15% and 25%. The adjusted EBIT margin is expected to be between 10% and 10.5% in 2021; the previous guidance was between 9.5% and 10.5%. Adjusted net income is likely to develop in line with the operating profit. (€1.00 = US$1.18 at time of publication.)

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