UPDATE 1-MTU sees billion-euro hit to earnings on turbofan woes
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Sept 11 (Reuters) - Problems with the turbofan engines at U.S. partner Pratt & Whitney led MTU Aero Engines to issue a profit warning on Monday, with measures to rectify the issue expected to deal a billion-euro blow to the German company's earnings.
MTU said an expanded inspection of the geared turbofan engines at Pratt & Whitney could result in a hit to revenue and reported EBIT of around 1 billion euros ($1.07 billion) in the current financial year.
"It is not possible at this stage to make a precise assessment of the impact on MTU's forecast for the current financial year," MTU said in a statement.
The company added that the associated liquidity impact was expected to occur in particular in the years 2024 to 2026.
Pratt & Whitney, a subsidiary of RTX Corp, had previously identified a "rare condition" in powdered metal used to manufacture certain engine parts, meaning that 600 to 700 engines would be removed for workshop visit in the coming years.
MTU has an 18% share in the geared turbofan engines, which power Airbus' A320neo family of aircraft.
Earlier Monday, the U.S. company said it expected a financial burden of $3-3.5 billion as a result of the problems.
Shares in MTU were down 8.9% at 1400 GMT. ($1 = 0.9321 euros) (Reporting by Anna Mackenzie, Writing by Rachel More, Editing by Friederike Heine and David Evans)
