April 30, 2020 / 6:37 AM / a month ago

MTU expects biggest corona hit in second, third quarters; too early to restate guidance

FILE PHOTO: A MTU Aero Engines EJ 200 turbofan aircraft engine is pictured at the ILA Berlin Air Show in Schoenefeld, south of Berlin, Germany, June 1, 2016. REUTERS/Fabrizio Bensch

BERLIN (Reuters) - German aircraft engine maker MTU Aero Engines (MTXGn.DE) saw operating profit slip 3% in the first quarter off revenues that were up 13% and said it was too early to issue a new outlook to replace the guidance it withdrew in March due to the coronavirus crisis.

The company said it expected its military engine business, which generated less than a tenth of revenues, to be almost unaffected, but collapsing demand would hit its commercial business in the second and third quarters.

“Given the dynamic global developments in connection with COVID-19, our expectations for the 2020 fiscal year can only be set out in detail at a later date,” said CEO Reiner Winker. “Given its fundamentally successful business model, we consider that overall MTU is in a good position to weather the crisis.”

Reporting by Thomas Escritt; editing by Thomas Seythal

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