MTU Aero Engines raises EBIT and cash conversion rate outlook for 2019

MTU Aero Engines raised (25-Jul-2019) its forecast for 2019. The company is now projecting an adjusted EBIT margin around 16%, up from its original forecast of 15.5%. 2019 full year net adjusted income is expected to increase in line with EBIT (2018 EBIT adjusted: EUR671.4 million, 2018 net income adjusted: EUR479.1 million). The cash conversion rate (ratio of free cash flow to net income adjusted) is expected at 65% to 70% in 2019, up from the previous forecast of 55% to 65% (2018: 42%). MTU Aero Engines CEO Reiner Winkler said the increase in the earnings outlook "mainly reflects two factors: One is that our MTU Maintenance Zhuhai site in China developed somewhat more positively than anticipated. In addition, changes in the product mix also had a positive effect". [more - original PR]