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NEWS
Major V2500 order
from US Airways
U.S.-based carrier US Airways has placed a
major order worth some 884 million euros
with International Aero Engines (IAE) to buy
SelectOne engines for 78 A320 family aircraft,
slated to be delivered this year. Along
with the firm order, the airline placed options
for another 75 aircraft.
For MTU Aero Engines, the order translates
Dream research
44 partners from industry and research, a
40-million-euro budget and a visionary name:
ValiDation of Radical Engine Architecture
SysteMs, or Dream for short, is a new
European technology project dedicated to
the development of novel engine concepts.
One of the partners on that project is MTU
Aero Engines.
36 News
into sales of approximately 100 million euros
and the work to be performed under it is just
about equivalent to a one-year V2500 engine
workload. As one of the IAE co-founders,
MTU holds a stake of about 11 percent in the
V2500 and contributes the low-pressure
turbine. The German engine manufacturer
also had a major role in the development of
the SelectOne build standard.
The German engine manufacturer is leading
one of five Dream part projects, dubbed
Innovative Systems. Together with Volvo
Aero and the Technical University of Graz,
MTU will explore various turbine center
frame configurations. The Active Turbine
work package focuses on active clearance
control. Partners are Magna Steyr and Vibro-
Michael Schreyögg
heads program
management,
defense programs
Michael Schreyögg has been appointed
senior vice president, program
management, defense programs, effective
February 1. In this function he
succeeds Dr. Roland Fischer, who left
the company.
Michael Schreyögg
After having worked at MTU Aero
Engines, Germany’s leading engine
manufacturer, on various military and
commercial programs for 17 years,
Schreyögg most recently supervised
the TP400-D6 military engine program.
That engine will power the upcoming
A400M military transport.
Meter, Stuttgart University and Bundeswehr
University Munich. The kick-off event took
place in Munich in February. “With this Dream
part project we support the progressive
development of the geared turbofan to
power A320 family and Boeing 737 successor
aircraft,” explains Dr. Günter Wilfert,
who at MTU manages the Dream project.
On a profitable
growth track
“2007 has been yet another successful business
year for MTU,” said Egon Behle, CEO of
MTU Aero Engines Holding AG, at the annual
press conference in Munich in mid-March. At
the first press conference he held in his new
function Behle presented very positive annual
results. MTU’s revenues in 2007 improved by
seven percent from approximately 2.4 billion
euros to around 2.6 billion euros, and were
therefore in line with the company’s estimated
target. There was a pronounced rise in
adjusted EBITDA, which grew at a rate of 24
percent to 392.9 million euros (2006: 318.2
million euros). MTU thus exceeded its forecast
of 385 million euros, which had been
raised in the course of the year. The compa-
MTU Aero Engines –
Key financial data for 2007
MTU Aero Engines
Revenues
of which OEM business
of which commercial engine business
of which military engine business
of which commercial MRO business
EBITDA (calculated on a comparable basis)
of which OEM business
of which commercial MRO business
EBITDA margin (calculated on a comparable basis)
in the OEM business
in the commercial MRO business
Net income (IFRS)
Net income (underlying)
Earnings per share (adjusted)
Free cash flow
Research and development expenses
of which company-funded R&D
of which outside-funded R&D
Capital expenditure
Order backlog, adjusted to eliminate effects of U.S. dollar
exchange rate
Order backlog
of which OEM business
of which commercial MRO business
Value of MRO contracts on engines for which maintenance
agreements are in place, in U.S. $
Employees
ny’s underlying net income also increased
significantly, improving by 22 percent from
121.8 million euros in 2006 to 148.2 million
euros in 2007. “We intend to stay on this
positive course in 2008. Our prime objective
is to expand on the basis of our good market
position in the commercial and military
engine business and to achieve profitable
growth,” commented Behle and continued to
add: “However, the U.S. dollar exchange rate
cancels out this growth when seen in terms
of the euro. Therefore further cost-optimization
measures will be necessary.”
MTU is striving for further profitable growth
in 2008. Revenues are expected to remain at
the previous year’s level, which corresponds
to a growth rate of approximately six percent
after adjustments for the effect of the U.S.
dollar exchange rate. The company anticipates
that adjusted EBITDA in 2008 will
remain close to the previous year’s level of
2007
2,575.9
1,599.5
1,102.0
497.5
1,004.7
392.9
305.7
87.9
15.3 %
19.1 %
8.7 %
154.1
148.2
€ 2.83
131.7
176.4
88.8
87.6
106.1
Dec. 31, 07
3,513.3
3,311.1
3,216.8
94.7
7,426.6
7,130
390 million euros, despite a significant
increase in investments and the effects of
the U.S. dollar exchange rate. MTU expects
to generate a net income for the year in the
region of 180 million euros, which represents
an increase of almost 20 percent.
The greatest contribution to these positive
results is expected to come from the commercial
engine business. MTU is reckoning
on stable development of its commercial
maintenance activities and in the military
sector. MTU intends to increase its investments
in 2008 to above the average level.
Plans especially include strategic investments
such as the acquisition of additional
shares in engine programs, expansion of
facilities at MTU Maintenance Hannover, and
the construction of the new plant in Poland.
Despite this expenditure, free cash flow is
expected to reach an amount of approximately
100 million euros.
(Figures quoted in € million, calculated on a comparable basis, statements prepared
in accordance with IFRS. Figures calculated on a comparable basis apply
adjustments to the IFRS consolidated results to exclude restructuring and
transaction costs, capitalized R&D costs, and the effects of IFRS purchase
accounting.)
2006
2,416.2
1,483.1
993.5
489.6
954.7
318.2
217.7
103.4
13.2 %
14.7 %
10.8 %
89.1
121.8
€ 2.25
115.7
169.9
80.6
89.3
114.1
Dec. 31, 06
3,342.3
3,342.3
3,218.4
124.1
4,847.0
7,077
Change
+ 6.6 %
+ 7.8 %
+ 10.9 %
+1.6 %
+ 5.2 %
+ 23.5 %
+ 40.4 %
- 15.0 %
+ 73.0 %
+ 21.7 %
+ 25.8 %
+ 13.8 %
+ 3.8 %
+ 10.2 %
- 1.9 %
- 7.0 %
Change
+ 5.1 %
- 0.9 %
- 0.05 %
- 23.7 %
+ 53.2 %
+ 0.7 %
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