Aircraft engines
MTU initiates alternative maneuvers for US tariffs
International air traffic has increased again strongly since the end of Corona pandemic, the aviation industry benefits. But the threatened high US tariffs would also hit this industry.
After a successful first quarter, the engine manufacturer MTU is setting up against the impending tariffs on aircraft parts. These could cost the company an average to high double -digit million amount, as CEO Lars Wagner said when submitting the new business figures. MTU still promises 15 percent for this year, but the possible effects of the customs conflict with the United States are not included.
Management wants to equalize supply chains
The European and the US aircraft industry are closely networked. MTU builds and develops engines in cooperation with the US manufacturer Pratt & Whitney. Important raw materials for turbine production are titanium and nickel, and MTU is dependent on two US suppliers. MTU is also a great service provider for maintenance and repair of aircraft engines in the USA. In order to alleviate the costs of higher tariffs, the company plans to equalize its supply chains. Where possible, parts between European locations should be delivered without intermediate steps in the United States.
First quarter successfully completed
In the first quarter, adjusted sales increased by a quarter to 2.1 billion euros compared to the previous year, the net profit rose by 77 percent to 224 million euros. MTU is one of the few German industrial companies that are flourishing despite continuing economic doldrums. Because of the weak US dollar, MTU had already reduced its sales expectations for this year to a range between 8.3 and 8.5 billion euros, 400 million fewer than in the original forecast.
dpa
Source: Stern
