MTU Aero Engines Q3 beats market expectations
Adds share move in para 5 and analyst comment in para 6
By Isabel Demetz and Tristan Veyet
Oct 24 (Reuters) -German engine manufacturer MTU Aero Engines MTXGn.DE beat third-quarter profit expectations on Thursday buoyed by commercial original equipment manufacturing and its spare parts business.
Adjusted earnings before interest and taxes (EBIT) rose by 42% to 273 million euros ($295 million), in line with preliminary results published in October and above the 235 million euros expected by analysts in a company-provided consensus.
"Earnings in the OEM business reflect the profitable revenue mix, with a high proportion of spare and lease engines, the high demand for spare parts and the increase in the military business,” Peter Kameritsch, CFO of the Airbus AIR.PA and Boeing BA.N supplier, said.
Airbus, oneof MTU's main clients, cut its delivery target for 2024 in June. This led to increased demand for spare parts, of which sales are usually highly profitable.
Shares of the engine manufacturer were trading up 1.4% at 0703 GMT and are up 60% year-to-date.
Organic revenue in the company's commercial series business showed a low 20% growth, which "possibly implies no growth in the third-quarter," a Jefferies analyst said, saying they expect analysts to focus on what seems to be a "significant slowdown".
($1 = 0.9271 euros)
Reporting by Isabel Demetz and Tristan Veyet; editing by Jason Neely
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