MTU Aero Engines forecasts high single digit revenue and operating profit growth for 2020

MTU Aero Engines reported (20-Feb-2020) the following outlook for 2020:

• Revenue in the commercial series production business forecast to increase organically by a high single digit percentage;
  • Revenue In the commercial spare parts business forecast to increase by a mid to high single digit percentage;
  • Revenue in the MRO business is expected to grow by a percentage in the low 20s. MTU anticipates a high single digit percentage revenue increase in the MRO core business. The remaining revenue increase results from the retrofit programme for the Pratt & Whitney Geared Turbofan, which is "likely to hold back our margin in commercial maintenance," according to CFO Peter Kameritsch;
• Operating profit of grow by a high single digit percentage;
• The cash conversion rate (ratio of free cash flow to net income adjusted) forecast at around 70% (2019: 67%);
• MTU is observing the potential impact of the coronavirus outbreak and will, if necessary, adjust its forecast during the course of the year. [more - original PR]