The previous Chief Technology Officer is moving to the head of the turbine manufacturer.
(Photo: MTU)
Frankfurt The Munich engine builder MTU surprisingly gets a new boss. The previous CEO Reiner Winkler will give up his post for personal reasons at the end of the year, the Dax group announced on Wednesday evening.
The 60-year-old will be succeeded at the beginning of 2023 by the previous CTO Lars Wagner. This was determined jointly by the Supervisory Board. Winkler’s contract would normally not have expired until the end of September 2024.
After more than 20 years in management and on the board, he now sees his time to pass on the tasks, Winkler explained on Wednesday. “The expected new growth phase of the company and the very good succession planning at the top of the Supervisory Board and the Management Board make the timing of my decision seem very suitable.”
Wagner has long been considered a potential internal candidate, said the head of the supervisory board, Klaus Eberhardt. Wagner, a qualified mechanical engineer and Master of Business Administration, was born in Cuxhaven. The 46-year-old graduated from the Lichtenberg-Gymnasium there and then began training as an aircraft manufacturer at Airbus in Bremen.
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This was followed by studying aerospace engineering in Aachen, London and Boston. He then returned to Airbus, where he held various management positions in Germany and France. Before joining MTU in 2015, he worked at the Airbus plant in Hamburg-Finkenwerder.
The father of two children is therefore a proven aviation expert who is very familiar with MTU’s core business. Last but not least, his close connection to Airbus should be helpful for his new task. MTU is part of a consortium that builds the engines for the short- and medium-haul A320 jet. The aircraft is the successful model of the European aircraft group.
The new CEO must significantly increase production
The future MTU boss will have a lot of work to do in the coming year. Airbus said on Wednesday evening that the monthly production rate for the A320 family is to be increased from currently around 50 jets to 75 aircraft by 2024. That is more aircraft than Airbus was producing per month before the pandemic began. Still CEO Winkler said last week that MTU is well prepared for such an increase in production. But MTU itself depends on suppliers. If there is a problem at just one point in the highly fragmented production chain, this has serious consequences.
>>Read about this: After billions in profit: Airbus wants to increase production of the A320 family to a record level
At the same time, MTU has to address the issue of sustainable aviation. The aim is to make the current combustion engines even more efficient, but also to develop completely new drive technologies. As CTO, however, Wagner has been dealing with these issues for some time, for example with the alternative fuel SAF.
In addition, Wagner is taking over from a manager who has made MTU a real success story. Investors’ expectations are likely to be correspondingly high. MTU once belonged to the Daimler group. He sold the company to financial investors, who took MTU public in June 2005. At the time, Winkler was CFO and the company’s CEO was Udo Stark. Since then things have gone uphill. The share started with an issue price of 21 euros, today it costs over 190 euros.
This is also thanks to Winkler, who took over the managerial position at MTU in 2014. In September 2019, MTU was even included in the Dax. The MTU course crashed badly when the pandemic began. The worst crisis in aviation did not leave the Munich company untouched. Airbus, for example, significantly reduced production of the A320, which is why MTU was able to supply fewer engine components. The maintenance business also suffered from the massive restrictions in air traffic. But as early as May 2020, the listing was on the up again. Since then, the stock has gained 80 percent in value.
MTU is worth more than the entire Lufthansa Group
MTU is currently worth a good ten billion euros on the stock exchange, more than the entire Lufthansa Group including its technology subsidiary Lufthansa Technik (8.6 billion euros). And the prospects are good. At the beginning of the year, MTU’s sales and profits increased noticeably, and the profit margin widened.
At the end of last week, Winkler spoke of good business prospects, which were reflected in new hires. The inspectors also appreciate the success. “MTU’s role in the global engine business has been significantly strengthened and expanded under his leadership. The Supervisory Board expresses its utmost respect and thanks for this,” said Chairman of the Supervisory Board Eberhardt.
According to MTU, the gap left by Wagner is now to be filled with a woman. This is also due to the legal requirements. However, the tasks would also be redistributed in the course of this.
With agency material
More: Engine builder MTU gears up for higher aircraft production