MTU Aero Engines’ Q1 profit rises on Eurofighter orders despite turbofan woes

BERLIN (Reuters) – German engine manufacturer MTU Aero Engines (OTC:) reported higher first-quarter earnings on Tuesday, boosted by orders from the joint European Eurofighter jet project while its turbofan engines recall campaign remained on track.

Adjusted operating profit increased by 3% to 218 million euros ($233.09 million) and sales grew 8% to 1.67 billion euros in the first three months of the year, both in line with LSEG’s mean estimate.

The Airbus and Boeing (NYSE:) supplier’s results beat expectations even as it continues to suffer from the consequences of an expensive recall campaign.

Last year, it had to recall up to 3,000 geared turbofan engines from its partner Pratt & Whitney for an inspection due to a potentially defective turbine disc, costing the German firm about 1 billion euros.

MTU’s military sales jumped by a fifth, reaching 124 million euros in the January-March period thanks to increased purchases of the EJ200 engine for the Eurofighter project.

($1 = 0.9353 euros)