UPDATE 1-MTU Aero reinstates revenue goal as maintenance bounces back

Thu Oct 23, 2014 2:53am EDT
 
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* Q3 adj EBIT 100.2 mln eur vs Rtrs poll avg 98 mln eur

* Now sees 2014 sales of 3.75 bln, adj EBIT 380 mln

* Commercial MRO business sales up 16.6 pct in quarter

* Shares indicated 2.2 percent higher (Adds comment from CEO, Safran results, details on MRO business)

BERLIN, Oct 23 (Reuters) - German aircraft engine maker MTU Aero Engines increased its 2014 revenue forecast, only a few months after reducing it, as demand for new plane engines continued to grow and its maintenance business turned a corner.

MTU, which makes engines for planes manufactured by Boeing , Airbus and Bombardier, had in July cut its revenue forecast for the year after maintenance order deferrals hit its second quarter results, but on Thursday reinstated it back at 3.75 billion euros.

It said that revenues in the commercial maintenance business, which makes up around a quarter of MTU's profit and is seen as one of its most lucrative units, were up 16.6 percent at 347.9 million euros in the third quarter after having fallen 10 percent in the previous quarter.

"Our third-quarter revenues in the MRO segment were higher than ever before," MTU Chief Executive Reiner Winkler said in a statement. "This means that we have turned the corner and reversed the negative trend that affected revenues in this segment in the earlier part of the year."

French aerospace firm Safran, which co-produces the world's most-sold jet engines, the CFM56, also said on Thursday that its third quarter revenues in the civil aftermarket business were up 11.9 percent in U.S. dollar terms.   Continued...