The half-year results released by engine manufacturer MTU Aero Engines show the net income for the company declining from €261.0 million to €161.3 million.
The company’s revenue was €2,048.8 million in the first six months of 2020, compared with the revenue for the first half of 2019 which was was €2,243.0 million.
CEO of MTU Aero Engines, Reiner Winkler commented on the results: “The figures reflect the first effects of the coronavirus pandemic. A better estimate of the quantitative impact of the coronavirus crisis is now also possible. On Friday, we therefore issued new guidance for 2020.”
MTU says the company anticipates an organic decline in the mid to high twenties in the commercial series production business and in the high twenties in the spare parts business. In its commercial maintenance business, the manufacturer expects an organic revenue reduction in the low to mid single-digit percentage range.
MTU announced plans in July to reduce personnel capacity by 10-15 percent by the end of 2021 due to the coronavirus pandemic.
Increase in PW1000G-JM shop visits
For the company’s commercial maintenance business, revenue was stable at €1,272.3 million in the first six months. According to the manufacturer, the main revenue driver was the V2500 for the classic A320 family, followed by the PW1000G-JM for the Airbus A320neo where MTU registered an increase in shop visits in connection with the retrofit programme. “This work could offset the decline in revenue in the core business,” explained Winkler.
In the commercial engine business, revenue fell from €773.0 million to €630.6 million, with Winkler noting that the figures reflect the reduction in aircraft production rates and the decline in aircraft deliveries.
The company’s order backlog at the end of the first six months remained high at €18.4 billion, with the majority of the orders relating to the V2500 and the Geared Turbofan™ engines of the PW1000G family, in particular the PW1100G-JM for the A320neo.
MTU is continuing to invest in research and development, with Winkler noting the company is actively preparing for the future through its research and development, with activities focusing on emission-free aviation.