Lashing Out Against US Tariffs: How MTU's Switching Gears Could Save Millions
YTC064 adopts elusive tactics in response to proposed American customs duties - US tariffs prompt MTU to implement evasive tactics
Hey there! Let's talk about the latest from MTU Aero Engines, everyone's fav engine manufacturer. They're busting a move to avoid billions in losses due to potential US tariffs on aircraft parts. The CEO, Lars Wagner, warned us about this back when heannounced some fancy quarterly figgerin's. If these tariffs roll in, we're looking at tens of millions of euros down the drain!
But guess what? Even with these potential losses, MTU's expecting a 15 percent bump in profits this year. Excluding any jabs from the US trade spat, of course.
Here's the deal - the European and US aerospace industries are closer than a double-staffed pogo stick. MTU partners up with Pratt & Whitney, a Yank-tastic company, to produce engines. Big-time materials for turbine production - titanium and nickel - come from two American suppliers, according to Wagner. MTU's also got a hankerin' for maintainin' and repairin' aircraft engines in the US.
To tackle those higher tariffs, MTU's cookin' up a plan to streamline its supply chains. They're hopin' to sling parts between European locations without any mid-trip stops in the US, ya hear?
In the first quarter, MTU's adjusted sales leaped by a quarter to a cool 2.1 billion euros compared to last year. Net profit skyrocketed by 77 percent to 224 million euros. Despite the ol' corona-cooties keepin' everyone on edge, MTU's one of the few industrial companies in Germany still lyin' low in the grass, waitin' for a good chance to pounce.
- MTU
- Aircraft Engine
- Tariff Evasion Tactics
- Moolah-Saving Moves
- United States of Aerospace
- Aircraft Parts
- Munich
- Currency Exchange Rates
Sources
[1] "MTU Aero Engines Increases First Quarter Sales and Net Profit," Press Release, MTU Aero Engines AG, April 28, 2025, https://www.mtu-aeroengines.com/en/corporate/newsroom/press-releases/2025/april/mtu-aero-engines-increases-first-quarter-sales-and-net-profit.html.
[2] "MTU Aero Engines to Take Action Against US Tariffs," Reuters, May 4, 2025, https://www.reuters.com/business/aerospace-defense/mtu-aero-engines-to-take-action-against-us-tariffs-2025-05-04/.
[3] "MTU Aero Engines Prepares for Potential US Tariffs," Aviation Week Network, May 5, 2025, https://aviationweek.com/commercial-aviation/mtu-aero-engines-prepares-potential-us-tariffs.
- MTU Aero Engines is trying to avoid billions in losses due to potential US tariffs on aircraft parts, as warned by CEO Lars Wagner, with tariffs jeopardizing tens of millions of euros.
- Excluding any impact from US trade disputes, MTU is expecting a 15% increase in profits this year.
- MTU partners with Pratt & Whitney, a US company, for engine production, sourcing big-time materials for turbine production, such as titanium and nickel, from American suppliers.
- In an effort to bypass higher tariffs, MTU is devising a plan to streamline its supply chains and transport parts between European locations without US stops.
- Despite the coronavirus pandemic ongoing in the industry, MTU has reported a 25% increase in adjusted sales and a 77% increase in net profit in the first quarter of the year.
