MTU share lower: MTU more than doubled profit in Q1

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The DAX group had already presented key figures last week that were above market expectations and confirmed its forecast.

As MTU Aero Engines AG announced on Wednesday, it achieved the highest sales growth in the commercial engine business with a plus of 60 percent to 446 million euros. The main sales driver was the PW1100G-JM engine for the Airbus A320neo. In the military engine business, on the other hand, sales fell by 5 percent to 103 million euros due to persistent delays in the supply chain. The main source of sales here was the Eurofighter engine EJ200. Overall, sales in the OEM business rose by 42 percent to 386 million euros in the three months to the end of March. In commercial maintenance, sales increased by 25 percent to 1.02 billion euros.

“MTU has thus got off to a flying start in the 2023 financial year,” said CEO Lars Wagner, according to the announcement. “The strong demand in the first quarter makes us confident and supports our growth course. Against the background of the ongoing uncertainties in the supply chains, however, we are maintaining our forecast for the full year 2023 today.”

Group sales rose by 31 percent to 1.54 billion euros, as MTU had already announced. Operating profit increased by 62 percent to 212 million euros and the corresponding margin improved to 13.7 percent from 11.1 percent in the same period last year. After taxes, MTU earned 70 percent more at 157 million euros. Free cash flow was EUR 93 million in the first quarter after EUR 134 million in the prior-year period.

For the year as a whole, the group is still targeting annual sales of between EUR 6.1 billion and EUR 6.3 billion. Sales in civil maintenance are expected to grow organically in the high tens of percent. In the military business, MTU expects sales to increase by around 10 percent. The adjusted EBIT margin should remain stable in 2023.

At times, MTU shares were down 2.05 percent on XETRA trading at EUR 234.50.

DJG/sha/brb

FRANKFURT (Dow Jones)

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