MTU Aero Engines Q2 Profit Declines

(RTTNews) - German aircraft engine manufacturer MTU Aero Engines AG (MTUAY.PK) reported Monday that its second-quarter net income declined to 13.2 million euros from 102.8 million euros last year.

Basic earnings per share were 0.20 euro, down from 1.92 euros last year.

Adjusted net income was 33.3 million euros, compared to prior year's 127.5 million euros.

Adjusted EBIT fell to 42.4 million euros from 177.6 million euros a year ago, especially in the OEM business. Adjusted EBIT margin declined to 5.5 percent from 16 percent last year.

MTU's revenue was 776.1 million euros from 1.11 billion euros a year ago.

The order backlog at the end of the first six months was 18.4 billion euros, compared to 19.8 billion euros as of December 31, 2019. The majority of these orders relate to the V2500 and the Geared Turbofan engines of the PW1000G family, in particular the PW1100G-JM for the A320neo.

As announced on Friday, the company projects fiscal 2020 adjusted EBIT margin of between 9 and 10 percent. Adjusted net income is anticipated to be in line with adjusted EBIT.

For 2020, MTU expects revenue of 4 billion euros to 4.4 billion euros. In percentage terms, the company anticipates an organic decline in the mid to high twenties in the commercial series production business and in the high twenties in the spare parts business.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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