Company News

UPDATE 1-Engine maker MTU Aero ups 2017 targets after strong Q2

* Hikes revenue aim to 5.3 bln euros vs 5.1-5.2 bln

* Now sees 2017 core earnings of 560 billion euros

* Adj EBIT for Q2 163.8 mln euros vs poll avg 148 mln

* Shares rise 1.6 percent in pre-market trade (Adds detail on division, executive quote)

BERLIN, July 28 (Reuters) - MTU Aero Engines upgraded its full-year sales and profit targets on Friday, after reporting better than expected second quarter profit thanks to booming demand for maintenance of passenger jet engines.

The German company, whose customers include Airbus, Boeing and Bombardier, said it now expected 2017 revenues of 5.3 billion euros ($6.2 billion), against a previous forecast for 5.1 to 5.2 billion, and core earnings of 560 million.

That is being driven commercial maintenance revenues, which it now expects to rise by a percentage rate in the medium to high teens in U.S. dollar terms, compared with a previous target for around 10 percent.

Before Friday’s update, analysts were expecting 2017 revenues of 5.19 billion euros and adjusted EBIT of 547 million.

On Tuesday, UTC said commercial aftermarket sales at its engine making unit Pratt & Whitney were up 4 percent in the quarter.

However, P&W has suffered teething problems with its geared turbofan engine for the A320neo aircraft, on which MTU is a partner, and has shifted deliveries into the second half of this year as a result.

“Our priority today is to process the record volume of orders received in the past few years ... while at the same time dealing with the ramp-up of the geared turbofan programs,” MTU Chief Operating Officer Rainer Martens said in a statement.

However, military engine revenues are now forecast to decrease by a greater amount than previously expected due to delays to the Eurofighter programme, MTU said.

It reported second quarter revenues of 1.287 billion euros and adjusted earnings before interest and tax (EBIT) of 163.8 million euros, against the forecast for 1.27 billion and 148 million in a Reuters poll.

Rival Safran also reported second quarter results on Friday.

$1 = 0.8551 euros Reporting by Victoria Bryan; Editing by Maria Sheahan