MTU Aero Engines has raised its full-year revenue and earnings targets for the second time this year, helped by a "favourable tailwind in both the OEM and MRO segments".
In July, the German engine specialist increased its 2018 revenue outlook to €4.2 billion ($4.8 billion) and its adjusted target for earnings before interest and taxes to around €640 million.
Now, MTU expects to deliver an adjusted EBIT of around €660 million on the back of a €4.4 billion turnover.
"Above all, the aftermarket for spare parts and commercial maintenance has again surpassed our expectations," states chief executive Reiner Winkler.
Adjusted EBIT in the commercial engine maintenance business increased by 45% year on year to €62.4 million during the quarter ended 30 September, while the segment's revenue grew 34%, to €731 million, compared with the same period in 2017.
Adjusted EBIT in the OEM business increased 11%, to €112 million, while segmental revenue grew 41%, to €569 million.
MTU notes, however, an adjusted EBIT margin decline to 19.6% in the OEM business, from 24.8%.
"The margin levels reflect the increase in deliveries for the [Pratt & Whitney PW1000G] geared turbofan programmes," finance chief Peter Kameritsch states. MTU is a partner in the PW1000G programme.
Adjusted EBIT margin in the commercial engine maintenance business grew 0.6 percentage points to 8.5%.
Revenue in MTU's military engine segment was flat, at €104 million, during the third quarter.
Winkler's contract has been extended by five years until 2024.
Source: FlightGlobal.com
