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 (RTX.N), 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' (AIR.PA) 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. -Reuters