Higher new-product and maintenance revenues propelled MTU Aero Engines to a record annual operating profit of €671 million in 2018.
The German company attributed its 23% rise in commercial maintenance revenues to more work for the V2500 and CF34 engine families.
Sales also rose 23% on the OEM side of the business, which mostly comprised sales of V2500, PW1100G and GEnx engines – for which MTU manufactures various components.
Of MTU’s total €4.6 billion revenue for 2018, commercial maintenance accounts for almost half, and OEM sales for about a third.
At €17.6 billion, MTU’s order backlog in 2018 was 18% higher than at the end of 2017.
“This, too, sets a new record. In purely mathematical terms, this translates into a capacity utilization of roughly four years, once again underscoring MTU’s excellent prospects,” said Peter Kameritsch, MTU’s chief financial officer.
MTU expects its healthy operating environment to continue through 2019, for which it forecasts revenue of €4.7 billion and growth of its commercial maintenance business “in the high-single-digit percentage range”.
It forecasts even higher growth of roughly 10-15% for its OEM business, while spare parts sales should increase by about 5-10%.
The company R&D investment has been flat for the last two years at about €200 million, with current activities focused on the GE9X engine and enhancements for the PW1100G.
“We successfully strengthened our already good market position in both of our operating segments – OEM and MRO – in 2018, thus establishing a basis for future growth. In 2019, we are aiming at new record figures,” said Reiner Winkler, CEO of MTU Aero Engines