April 28, 2017 / 6:16 AM / in a year

MTU Aero Engines beats forecasts thanks to maintenance division

BERLIN, April 28 (Reuters) - German aircraft engine maker MTU Aero Engines reported a better than expected 19.6 percent rise in first quarter profit, driven by its business maintaining commercial jet engines. The company, whose customers include planemakers Boeing , Airbus and Bombardier, reported adjusted earnings before interest and tax (EBIT) of 157 million euros ($170.6 million), against average analyst expectations for 140 million euros.

Its commercial maintenance business saw revenues rise 37 percent thanks to demand for services for the V2500 engines that power A320 jets, helping to lift the EBIT margin to 12.4 percent from 12 percent a year ago.

It confirmed it expects revenues of 5.1 to 5.2 billion for 2017 and an operating margin stable at around last year’s level of 10.6 percent. French rival Safran earlier this week reported higher then expected first quarter sales, also helped by aerospace services.

$1 = 0.9204 euros Reporting by Victoria Bryan; Editing by Maria Sheahan

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