FRANKFURT, July 25 (Reuters) - Germany’s MTU Aero Engines lifted its forecast for 2012, benefitting from an increased stake in the V2500 engine programme for Airbus A320 jets and dollar exchange rates, as it reported slightly better than expected second-quarter results.
Although economies are stuttering, aircraft demand remains relatively strong as airlines modernise fleets to survive high fuel costs and the balance of growth shifts towards Asia. The challenge is for suppliers to meet the backlog.
MTU said on Wednesday its order backlog stood at 12.2 billion euros, equivalent of more than three years’ worth of work.
The engine maker now expects 2012 sales and adjusted earnings before interest and tax (EBIT) to rise around 13 percent to 3.3 billion euros ($3.99 billion) and 370 million. It previously expected 2012 revenues to rise by around 5 percent, and adjusted EBIT by 8-10 percent.
MTU last month increased its stake in the International Aero Engine consortium’s V2500 engine programme, which it said would generate additional sales of around 3-4 billion euros over the next 25 years, of which 100 million would come in 2012.
The group on Wednesday reported second-quarter sales of 861 million euros and adjusted EBIT of 84.4 million. That compares with expectations for adjusted EBIT of 82 million euros on sales of 777 million.
$1 = 0.8275 euros Reporting by Victoria Bryan