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MTU Aero's 2022 Profitability Target Falls Short of Expectations -- Market Talk

Dow Jones Newswires ·  Nov 22, 2021 05:00

0955 GMT - MTU Aero's 2022 adjusted EBIT guidance outlined last week during its capital market day is below market expectations by 4%-5%, though its 2024 outlook is encouraging, Deutsche Bank says. The EBIT shortfall is partly due to lower-than-expected maintenance, repair and overhaul profitability next year, the German bank says. "Another factor is that GTF [engine] spare parts are not as profitable as V2500's and it will take some time to best cost their production," it says. DB notes, however, that the 2024 forecast provided by the German aircraft engine manufacturer "is still broadly squared with our expectations." MTU Aero guided for adjusted EBIT exceeding 2019's levels by 2024. (olivia.bugault@wsj.com)

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