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UPDATE 1-MTU Aero tops forecasts on passenger jet demand
October 23, 2013 / 8:24 AM / 4 years ago

UPDATE 1-MTU Aero tops forecasts on passenger jet demand

* Q3 sales 925.9 mln eur vs poll avg 920 mln

* Adj EBIT 98.8 mln eur vs poll avg 95.1 mln

* Keeps 2013 outlook for flat earnings, sales of 3.7 bln eur

* Shares down 1 pct (Adds detail on outlook, forex, shares, analyst comment)

By Victoria Bryan

FRANKFURT, Oct 23 (Reuters) - Germany’s MTU Aero Engines reported better than expected results on Wednesday, helped by demand for engines for new passenger jets, and affirmed its outlook for the year.

Global airlines will buy more than $3.5 trillion of aircraft over the next 20 years, to meet demand for travel to and from emerging markets and renew ageing fleets in the West, according to the world’s big two planemakers, helping suppliers such as GKN and MTU.

MTU’s third-quarter sales grew 2 percent to 925.9 million euros ($1.3 billion) and adjusted EBIT fell 3 percent to 98.8 million, against expectations for 920 million euros and 95.1 million in a Reuters poll.

The group, which makes engines for Airbus, Boeing and Bombardier, said it still expected sales to rise about 10 percent to 3.7 billion euros ($5.1 billion) and adjusted EBIT (earnings before interest and tax) to reach 375 million euros, matching last year’s figure.

DZ Bank analyst Markus Turnwald said MTU seemed to be back on track after a profit warning in July due to weak demand at the spare parts business.

“After a temporary disappointment in the second quarter, now third-quarter figures show an good improvement compared to the second quarter. The confirmed outlook seems to be clearly reachable after today’s figures,” Turnwald wrote in a note.

MTU’s shares rose to their highest level since the July profit warning in early trade but were down 1 percent at 70.59 euros by 0807 GMT, with some analysts saying a 6 percent decline in maintenance revenue was disappointing.

MTU also said it took a 12.2 million euro hit on income from currency effects in the first nine months of the year, against a positive effect of 13 million for the same period in 2012, mainly due to the U.S. dollar weakening against the euro.

$1 = 0.7260 euros Additional reporting by Maria Sheahan; Editing by Peter Dinkloh and David Holmes

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