Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MTU AERO ENGINES AG. We currently have 9 research reports from 2 professional analysts.
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MTU AERO ENGINES AG
MTU AERO ENGINES AG
Large order backlog not at risk!
10 Jan 17
According to the latest news, the two large aircraft producers Boeing and Airbus are facing some cancellations or delivery delays/postponements from the airline industry. Around 180 aircraft were cancelled at Boeing in 2016 and 190 at Airbus. In general, single-aisle aircraft such as A320 and 737 are less effected than larger aircraft. The economic performance of the airline industry was pretty strong in 2016 according to IATA. Revenues declined 2.4% to US$701bn but the operating margin remained stable at around 8.3%. Net profits increased marginally from US$35.3bn to US$35.6bn. The net margin improved from 4.9% to 5.1% in 2016. In the current financial year, IATA is expecting revenues to increase by 5% to US$736bn but net profits will decline 16.3% to US$29.8bn. The net margin will reach 4.1% and the EBIT margin 6.6%. An increase in fuel expenses, however, are only one part of the story. Fuel expenses are expected to increase by 4% and will contribute 18.8% to total expenses (previously 19.3%). Non-fuel expenses will increase by 7.7% and contribute 81.4% to total operating costs compared to 80.7% in 2016.
Strong performance even based on real numbers
28 Oct 16
The company reported Q3 16 results. Revenues increased 4.5% to €1.1bn and the order backlog declined 8% to €11.15bn. The gross margin improved from 14.9% to 15.6%. Real EBIT increased 19.1% to €117.4m and the EBIT margin improved from 9.3% to 10.7%. Also, the EBITDA margin increased from 13% to 13.6%. Adjusted EBIT according to the company rose 16.1% to €139.7m and the adjusted EBIT margin increased from 11.4% to 12.7%.
Guidance marginally increased
26 Jul 16
In Q2 16, revenues increased 9% to €1.2bn and the gross profit jumped 12.6% to €164.2m. The gross margin increased from 13.2% to 13.7%. EBITA improved 3.4% to €146.7m and the EBITDA margin declined from 12.6% to 12.2%. The EBIT margin also declined from 8.9% to 8.6% but EBIT increased 6.3% to €103.7m. Adjusted EBIT grew 6.7% to €122.8m and the adjusted EBIT margin declined from 10.4% to 10.2%. Net income plummeted 17.8% to €68.2m. Real EPS declined 17.3% from €1.62 to €1.34, whereas adjusted EPS increased 6.5% from €1.55 to €1.65. The total order backlog before consolidation reached €11,544m representing a two and a half years production workload. The majority of the backlog is orders for the V2500 and the PW1000G-JM (Airbus 320neo).
MRO business is driving the performance
29 Apr 16
MTU reported Q1 16 results. Revenues remained stable at around €1.1bn. Revenues of the high margin MRO business, however, grew 11.7% to €428.8m. Revenues of the OEM commercial business division declined 12.5% to €556m but increased 36.5% to €124.5m in the OEM Military business division. The order backlog before consolidation declined 4.9% to €11.88bn. The order backlog for the commercial engine business declined 6.6% to €5.9bn, representing a workload of up to 2.5 years. In the aviation industry, the total order backlog of Airbus and Boeing reached 13,200 aircraft representing a workload of 7 to 8 years.
Nothing new from the AGM!
15 Apr 16
At the AGM (14 April 2016) management discussed the capacity increase for producing turbines, compressors and other modules for the new A320neo. The total number of modules, not engines, will increase from 2,000 in 2015 to 4,000 in 2020. This information, however, is not new and was already discussed last year. In August 2015, Airbus reported an order backlog for the A320neo of around 4,100 aircraft (8,200 engines). Pratt & Whitney reported a total order backlog of 7,000 GTF (geared turbofan) orders, of which around 2,800 will be used for the A320neo platform.
MRO business is driving the performance
16 Feb 16
The company reported preliminary results ending in December 2015. Revenues increased 13.3% to €4.44bn compared to €3.98bn in 2014. The order backlog rose 11.8% to €12.49bn. Adjusted EBIT increased 15.1% to €440.3m. EBIT of the OEM business division improved 7.1% to €285m and the commercial MRO (maintenance, repair, overhault) business 33.4% to €155.2m. Consequently, the EBIT margin of the OEM business declined from 10.1% to 9.8% and in the MRO business the adjusted EBIT margin increased from 9% to 9.8%. Net adjusted income increased 21.2% to €306.9m. Real net income, however, only rose 11.4% to €217.6m (estimate: €257.4m). The gap between virtual reality and the real world has widened further. The company is adding back all unpleasant cost items such as purchase price allocation write-downs, capitalised R&D costs and impairments even on a net income level.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
Actual Experience (ACT LN) 2017 – a milestone year for revenue | Bagir Group (BAGR LN) Independent NED appointment to strengthen Board composition | Bioquell (BQE LN) Reassuring pre-close statement | Carador Income Fund (CIFU LN) Q4 dividend increased to 2.75c, 0.5c higher than forecast | FreeAgent (FREE LN) Contract with Royal Bank of Scotland | Halfords Group (HFD LN) Excellent Q3 update, special divi and confidence in FX mitigations | N Brown Group (BWNG LN) Robust peak trading with reversal of drag from older titles | NCC Group (NCC LN) Interims confirm underlying business sound | St Ives (SIV LN) Downgrade | Summit Therapeutics (SUMM LN) Dr David Roblin appointed Chief Operating Officer and R&D President | Wilmington Group (WIL LN) Acquisition – Further scaling of Healthcare