MTU Aero Engines recorded higher profit for its maintenance business despite broadly flat revenue in the first nine months of the year.
Commercial maintenance earnings before interest and tax (EBIT) were up 11.6% to €187 million for the nine months to Sept. 30, a margin of 16.4%, versus 15.3% in the prior-year period.
“In terms of organic growth, revenue in the commercial MRO segment has increased by around 8%,” said chief financial officer Peter Kameritsch.
Growth in the MRO segment was driven mainly by the V2500 engine, followed by the CF34 family of regional jet engines.
The Aviation Week Fleet & Data Services 2020 Forecast predicts that global annual maintenance demand for the V2500 will rise from $3.2 billion in 2020 to a high of $4 billion in 2023, and then fall to roughly $2.7 billion by 2029.
It also predicts that the CF34 maintenance market will rise from $1.7 billion in 2020 to a peak of just over $2 billion in 2023, ending up at $1.4 billion in 2029, when the number of units in service will have fallen from about 5,900 a decade earlier to roughly 4,800.
V2500 and PW1000G engine and parts sales also drove forward MTU’s OEM business, which saw earnings climb 8.6% to reach €370 million at a margin of 25.3% for the first nine months of the year.
Chief executive Reiner Winkler was encouraged by the strong results, saying that “2019 looks set to become another record-breaking financial year for MTU”.
For the full year MTU forecast total sales of roughly €4.7 billion and commercial MRO sales growth in the high single digits. It expects spare parts sales to be up by 5-9%.