MTU's targets for the financial year 2017 are as follows:
|in € million||Forecast 2017||Actual 2016|
|Revenues||~5,100 - 5,200||4,732.7|
|Adjusted EBIT margin||Stable||10.6%|
|Adjusted earnings after tax||Stronger increase than adjusted EBIT||345.4|
Cash conversion rate
Lower double-Digit percentage
The company expects its revenues, earnings and free cash flow to continue rising in 2017.
In the commercial OEM Business, MTU expects to see an increase in revenues in 2017, both from engine manufacturing activities and from spare parts sales. This business unit is expected to grow in U.S. dollar terms by a percentage in the mid-to-high single-digit range.
Revenues in the military engine business are expected to decrease by a percentage in the high single digits.
MTU's revenue forecast for its commercial maintenance business in 2017 is for a growth rate of approximately 10% in U.S. dollar terms.
MTU expects its operating profit (adjusted EBIT) to increase in 2017 compared to 2016. The adjusted EBIT margin is expected to remain stable.
Adjusted earnings after tax
In 2017, adjusted earnings after tax are expected to grow at a higher rate than EBIT.
Free Cash Flow
MTU plans to achieve a free cash flow conversion rate (ratio of free cash flow to adjusted earnings after tax) in the lower double-digit percentage range.
In addition to information relating to past events, this report also contains forward-looking statements. Such passages can generally be identified through the use of such terms as ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘anticipate’, ‘predict’, ‘will’, ‘believe’, ‘is likely to’, ‘might’ and similar phrases, or through the fact that they are presented in the context of a strategy. Forward-looking statements relate to future expectations, developments, trends, and business strategies, and are based on analyses or predictions of MTU’s future business performance and estimates of figures that cannot be affirmed with any certainty at the present time. These forward-looking statements merely reflect MTU’s current outlook at the time the statements were made, and MTU does not accept any responsibility for updating forward-looking statements except in cases where it is a statutory requirement. The forward-looking statements contained in this chapter involve known and unknown risks, uncertainties, and other factors that may result in an actual future outcome based on real events, developments and performances that deviates significantly from the content of the statements presented here. These factors include changes in the general economic climate and business environment, exchange rate fluctuations, in addition to the factors enumerated in the "risk report" section of the MTU Annual Report 2015.