Outlook 2018

MTU's targets for the financial year 2018 are as follows:

Forecast 2018Actual 2017
Revenues~ 4.2 bn €3.9 bn €
Adjusted EBIT ~ 640 m€573 m€
Net Income adjusted~ 450 m€405 m€
Free Cashflow Conversion~ 40-50%37%


MTU has firmed up its forecasts for the financial year 2018 compared to the outlook presented in the Annual Report 2017.

Growth predictions for the commercial spare parts business, as well as for the commercial maintenance business were adjusted slightly upward, which has a positive effect on earnings potential.

MTU expects growth in its commercial OEM business to be slightly higher than originally forecast, due to a more positive trend in spare part sales. The main growth driver in the spare parts business is the V2500 program.

Growth in the new engine business is expected to accelerate in the second half of the year, in which deliveries for the PW1000G programs are set to double.

Revenues from the military engine business are expected to remain stable in 2018.

MTU’s full-year forecast for its commercial maintenance business is now for revenues expressed in U.S. $ to grow by around 20% in 2018.

For the group as a whole, assuming an exchange rate of U.S. $ 1.20 to the euro, MTU forecasts an increase in revenues to approximately € 4,200 million (2017: € 3,897 million). MTU expects the group’s operating profit (EBIT adjusted) for 2018 to increase to around € 640 million (2017: € 573 million). In its original forecast, MTU had anticipated only moderate earnings growth.

Changes in the product mix in the commercial OEM business, which compared to the previous year may have a negative impact on operating profit, are likely to be more than compensated for by growth in the commercial spare parts and maintenance business.

Adjusted earnings after tax are expected to rise in 2018 to around € 450 million (2018: € 405 million).

2018 will again be another year of substantial investment spending. However, MTU plans to compensate for this cash outflow through its operating activities and achieve a higher free cash flow conversion rate (ratio of free cash flow to net income adjusted) compared with the 2017 financial year. The current forecast foresees a cash flow conversation rate in the order of 40 to 50% (2017: 37%).


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.