Next beneficiary MTU Engines are Also Booming in These Times

Source: dpa | Translated by AI 1 min Reading Time

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After Rolls-Royce has earned well, among other things, with jet engines, MTU from Munich also cannot complain ...

A look into the engine assembly at MTU in Munich. The best part: The order situation is already so strong (primarily from the civil sector) that there is no need to worry about the medium-term future...(Source:  MTU)
A look into the engine assembly at MTU in Munich. The best part: The order situation is already so strong (primarily from the civil sector) that there is no need to worry about the medium-term future...
(Source: MTU)

The engine manufacturer MTU is benefiting from strong demand in civil aviation and the defence industry, it is reported. In the first half of the year, revenue and profit increased significantly as a result. CEO Johannes Bussmann and CFO Katja Garcia Vila now see the company on a good path to achieving its annual targets, including growing revenue to between 9.2 and 9.7 billion euros (approx. between 10.6 and 11.2 billion USD). Revenue in the first half of the year already grew by 13 percent (to nearly 4.7 billion euros, approx. 5.4 billion USD). Net profit increased by five percent (to 502 million euros, approx. 579 million USD). Despite the highly volatile situation in the Middle East, MTU achieved strong results in the first half of the year. Together with the larger US engine manufacturer Pratt & Whitney and Japanese Aero Engines, the Munich-based company builds the so-called geared turbofan engine, which powers the smallest Airbus passenger jet A220 and approximately every second aircraft of the A320neo model family (Neo-fan assembly in the image)—currently the best-selling aircraft series in the world.

MTU is already secured for three years

MTU is also involved in engines for wide-body jets from the US manufacturer Boeing. Both Airbus and Boeing had also reported good figures in previous days. However, it must also be noted that revenue and operating profit in the business with new engines slightly declined – mainly due to the weak US dollar. Engine maintenance and the milita—business, however, generated significantly more than a year ago. The defence business, incidentally, plays only a minor role at MTU. The majority of its revenue is generated in the civilian sector. In any case, the roughly 14,100 employees worldwide will not run out of work in the near future! By the end of June, the order backlog stood at 30.4 billion euros (approx. 35.04 billion USD), which, according to Garcia Vila, ensures production capacity utilisation for a good three years.

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