* Sees adj EBIT growing faster than revenues from 2018
* Spare parts, maintenance unit to post fastest sales growth
* To give detailed 2017 outlook on Feb. 23
* Shares rise 1.3 percent
(Adds details on 2017, cash flow)
BERLIN, Dec 14 German aircraft engine maker MTU
Aero Engines said a phase of investment will come to an end in
2017, with core profits set to grow faster than revenues from
2018, thus improving its margins.
MTU Aero, whose customers include Airbus, Boeing
and Bombardier, has been investing in new
engine programmes recently, but new engines are less profitable
than replacing and repairing parts.
"We expect our highly profitable spare parts and maintenance
business to generate the highest increase in revenues as of
2018," Chief Executive Reiner Winkler said in a statement on
MTU said it expected cash flows to increase from 2018,
meaning greater payouts for shareholders.
Its shares were up 1.3 percent at 0927 GMT, outperforming a
0.1 percent rise for German mid-sized companies.
MTU's operating profit margin was 9.9 percent in 2015, down
from 11.1 percent for 2012. It expects adjusted earnings before
interest and tax of around 500 million euros ($531 million) this
year, on revenues of 4.7 billion.
In 2017, revenues from the commercial maintenance business
should increase by a percentage in the low teens, while spare
parts sales will grow by around 3 to 7 percent, MTU said during
an investor day.
Revenues from production of new engines will rise by 7 to 9
percent, while military sales will decrease by around 3 to 7
It added it expects the military business to remain stable
through to 2025, whereas previously it had expected a moderate
It said it would provide a more detailed outlook for 2017
when it reports annual financial results on Feb. 23.
($1 = 0.9417 euros)
(Reporting by Victoria Bryan; Editing by Maria Sheahan)