July 24, 2014 / 8:15 AM / in 3 years

MTU Aero says maintenance contracts delayed, not cancelled

BERLIN, July 24 (Reuters) - German engine maker MTU Aero Engines said maintenance contract delays that prompted it to reduce its sales outlook for 2014 were not cancellations, adding it would still get the revenue in the future.

MTU said that two contracts that had been delayed were from the U.S. Air Force, which it said had likely been pushed back for budget reasons, and from airline US Airways, because of its merger with American to form American Airlines Group.

“It means the fleet planning of the two is volatile and so things have been delayed,” MTU board member Stefan Weingartner told journalists after the company reported second-quarter results.

MTU added that it did not expect the crisis in Ukraine and Russia to have any impact on its business, because Russia makes up just 3 percent of its sales. (Reporting by Victoria Bryan; Editing by Maria Sheahan)

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