MTU Aero Engines shares fall on neutral profit outlook; ATR to lift production
MTU Aero Engines forecast has group revenues would grow by 7-8% in 2011 but profits will only match 2010 levels. The main growth driver is set to be the commercial engine business, with an anticipated 15-20% increase in sales. The spare parts and commercial MRO businesses are expected to grow by 5-10%. Revenues in the company's military engine business are likely to fall by 10%.
MTU expects a profitable year, with operating profit and earnings after tax at similar levels to 2010. The company reported an EBIT of EUR311.3 million and net income of EUR142.2 million in 2010. Shares in MTU dropped 4.2% yesterday, on a generally negative day for aerospace shares.
ATR, owned by EADS and Alenia Aeronautica, confirmed it plans to increase output to 70 turboprops per year by 2012. The company expects revenue to grow from USD1.35 billion to 1.8 billion by 2012, thanks to renewed interest in the turboprop market. ATR booked 80 orders in 2010 - double 2009 - and ended the year with a backlog of 159 aircraft. The backlog includes 107 ATR 72-600s, 41 ATR 72-500s, four ATR42-500s and five ATR 42-600s.
Selected Aerospace daily share price movements (% change): 23-Feb-2011
