Company News

UPDATE 1-MTU eyes bigger share of future aircraft engine programmes

* CEO: Bigger share of engine programmes is long-term goal

* MTU sees steady growth in adj net profit in 2019-2025

* Sees moderate rise in 2018 underlying operating profit (Recasts, adds CEO comment, further details)

BERLIN, Dec 12 (Reuters) - Germany’s MTU Aero Engines aims to take on a bigger share of the work on future engines in the next two decades, looking ahead to when aircraft manufacturers could roll out all-new planes, it told analysts on Tuesday.

“Our long-term objective is to acquire higher shares in future engine programmes than before,” Chief Executive Reiner Winkler said in a statement.

Aircraft engines are commonly developed and made by more than one company to spread the costs and risk among several parties. MTU, whose customers include Airbus, Boeing and Bombardier, has traditionally had a relatively small shares in engine programmes.

For instance, it is responsible for 18 percent of the PW1000G Pratt & Whitney engine, which powers planes such as the Airbus A320neo and Bombardier CSeries.

Munich-based MTU said on Tuesday it expects its annual underlying net profits to grow steadily from 2019 to 2025 as margins from new engines improve following several years of heavy investments and revenues from spare parts and maintenance services rise strongly.

In 2018, adjusted earnings before interest and tax (EBIT) will rise moderately, helped by a 30 percent jump in revenues from new engines for commercial aircraft.

Revenue growth from spare parts will slow to a medium single-digit percentage from an expected 10 percent this year and while its commercial maintenance business will remain strong with a percentage in the high teens, it said. (Reporting by Maria Sheahan; Editing by Victoria Bryan)