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MTU Aero eyes gains after 2012 net rises 9.2%

Keywords: Tags  MTU Aero Engines Holding, Egon Behle, aerospace, Pratt & Whitney, Airbus, Boeing, Engine Alliance, V2500 PW1000G

LOS ANGELES — MTU Aero Engines Holding AG’s net income rose 9.2 percent in 2012, and the company expects commercial aerospace demand to drive both the group’s revenue and operating profit up 10 to 12 percent in 2013.

The Munich-based aircraft engine maker reported provisional net income of €173.9 million ($230.9 million) on revenue of €3.4 billion ($4.5 billion) in 2012, up from net income of €159.2 million on revenue of €2.9 billion in 2011.

Last year’s results have taken the company "one big step closer to realizing our goal of €6 billion by 2020," chief executive officer Egon Behle said in a statement.

MTU Aero expects to see the strongest growth from commercial engines in 2013, with revenue expected to rise 20 to 25 percent, it said.

The company also expects spare parts sales to rise about 15 percent, with growth in commercial engine maintenance up in the "high single-digit range." Military engine revenue will remain "stable," it added.

MTU Aero’s commercial engine business, which accounted for 55 percent of last year’s revenue, manufactures the V2500 engine for the Airbus A320 airliner series, which is built by a partnership with East Hartford, Conn.-based Pratt & Whitney Corp., London-based Rolls-Royce Plc and Tokyo-based Japanese Aero Engines Corp.

Major revenue drivers for MTU Aero’s commercial business also included the Pratt & Whitney PW2000 engine, which powers the Boeing 757 and Boeing C-17 Globemaster III military transport aircraft, and the GP7000 engine for the Airbus A380, which is built by East Hartford. Conn.-based Engine Alliance LLC.

MTU Aero’s maintenance, repair and operations business posted the greatest revenue growth in 2012, rising 17 percent from 2011.

The company’s order backlog as of Dec. 31 was €11.5 billion ($15.3 billion), up 9 percent year on year, representing more than three years of the company’s production capacity.

The two most important pillars of MTU Aero’s future business are the V2500 engine and the geared turbofans in Pratt & Whitney’s PW1000G family, which will power the upcoming A320neo, as well as the Bombardier CSeries airliners and the Japanese-built Mitsubishi Regional Jet (MRJ), among others.

MTU Aero’s main source of business in the military sector was the EJ200 engine built by the Hallbergmoos, Germany-based Eurojet Turbo GmbH consortium, which also includes Rolls-Royce, Turin, Italy-based Avio SpA and Zamudio, Spain-based Industria de Turbo Propulsores SA.

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