MTU Aero sees new engine business growing strongly in 2014
FRANKFURT Nov 26 (Reuters) - German aircraft engine maker MTU Aero Engines sees its new engines business growing faster than its more profitable spare parts business next year as planemakers like Boeing and Airbus ramp up production of top selling passenger planes.
MTU said it expects revenues in its new engine business to rise by a mid-teens percentage in 2014, based on higher delivery volumes.
But the more profitable spare parts division will grow only moderately, by a mid single-digit percentage, MTU said at an investor day on Tuesday.
Because of the investment needed to meet increased production for the geared turbofan programme for the A320neo and other jets, MTU is planning to cut costs elsewhere by several tens of millions of euros a year.
It said on Tuesday that it would cut back on business travel, marketing expenses, external consultants and would not replace around 100 administrative staff expected to depart over the next four years.