MTU Aero Engines Half-yearly Profit Doubles, Affirms 2023 Revenue Guidance

Aerospace and defense business MTU Aero Engines AG (MTUAY) on Wednesday announced profit for the first half ended June 2023 that more than doubled. It also affirmed its 2023 revenue guidance, slightly below view.

Net income for the six months was 256 million euros or 4.75 euro per share compared with 120 million euros or 2.23 euros per share in the corresponding period of the previous year.

Adjusted net income jumped to 300 million euros from 207 million euros in the corresponding period of the previous year.

Revenue increased 25 percent in the half year to 3.1 billion euros, from 2.5 billion euros in the prior-year period.

Revenue increased to 1.55 billion euros during the quarter, from 1.29 billion euros in the quarter ended June 2022.

10 analysts polled by Thomson Reuters was expecting the company to report revenues of 1.54 billion euros during the June quarter.

The company posted higher revenue in all business segments in the first half of 2023.

“Flight activity and the order situation are underlining the recovery in our industry. Against this back-drop and in view of our figures for the first half of the year, we believe that we are on track to reaching the targets we have set ourselves for 2023,” said Lars Wagner, CEO of MTU Aero Engines AG.

The company also confirmed its full-year guidance for 2023. The company has targeted revenues of 6.1 to 6.3 billion euros. Twenty-three analysts on average polled by Thomson Reuters expect the company to report revenues of 6.31 billion euros in the year 2023.

Adjusted EBIT is expected to be slightly higher than 800 million euros in 2023, while the adjusted EBIT margin is set to widen slightly over the prior year’s level of 12.3 percent.

Shares of MTU Aero Engines closed Tuesday’s trading at 213 euros, down 16.10 euros or 7.03 percent from the previous close.

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