February 21, 2018 / 7:28 AM / a year ago

UPDATE 1-MTU Aero eyes further profit rise in 2018, subject to A320neo

* 2017 adj EBIT 606.6 mln vs poll avg 601 mln

* Forecast based on quick resolution to A320neo problems

* Expects to double GTF production in 2018 (Adds further details on GTF targets, divisional targets, IFRS accounting change)

MUNICH, Feb 21 (Reuters) - German aircraft engine maker MTU Aero Engines expects further growth in profits after reporting a record result for 2017, but said on Wednesday its goals depended on the latest problems with the A320neo engines being resolved quickly.

MTU is a partner on the geared turbofan (GTF) engine made by Pratt and Whitney, which powers the Airbus A320neo and which has suffered a fresh round of problems that saw some A320neo jets grounded and certain deliveries halted this month.

The German company said its forecast for 2018, including for a "moderate" increase in core profit, was based on the assumption that the latest problems could be rectified quickly, without jeopardising delivery targets.

Airbus said last week it expected deliveries could resume in April.

MTU said 374 GTF engines were delivered last year and predicted that figure would double this year.

MTU Aero reported 2017 adjusted earnings before interest and tax of 606.6 million euros ($748.1 million), slightly above the average forecast in a Reuters poll. Revenues were slightly lower than expected at 5.036 billion euros.

It will switch to the IFRS accounting standard from this year, which will mean an adjustment of its 2017 figures, with revenue down to 3.65 billion and operating profit of around 570 million.

New commercial engines will be its fastest growing area in 2018, MTU said, with revenues expected to rise around 30 percent in U.S. dollar terms.

Sales in the commercial maintenance business are expected to rise by a percentage in the high teens, while spare parts sales will rise around 4 to 7 percent. The military business will remain stable.

$1 = 0.8108 euros Reporting by Victoria Bryan; Editing by Maria Sheahan

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