Revenue and earnings growth targeted
Against a backdrop of growing aircraft fleets worldwide, the MRO industry is expecting medium-term growth of around 4 per cent per year. Lufthansa Technik’s portfolio will grow faster than this, however, due to its focus on modern aircraft types. The rising demand is nonetheless being met by a much greater supply of services. Under these conditions, only MRO providers with a competitive cost base and a high-quality, innovative product portfolio will be able to pursue a strategy of profitable growth in future. In the short term there is a risk that deterioration of the global economy will feed through to demand for MRO services.
Lufthansa Technik will maintain the strict management of costs and efficiency that is embodied in the ESP@LHT programme to safeguard earnings and intends to keep on innovating and optimising its products. The programme focusses on reducing operating and project expenses while simultaneously launching a sales offensive to drive revenue growth. The early product entry into the new aircraft models Boeing 787 and 747-8i will also contribute to a positive performance. This is also the goal of group management, which aims to expand the best sites and restructure the critical ones.
Based on current economic forecasts, Lufthansa Technik is expecting a modest increase in revenue in the financial years 2012 and 2013 and a return to increasing operating results.