Pratt Engine Partner MTU Loses $3.6 Billion of Market Value
- MTU sinks 23% in two sessions as engine inspections expanded
- German firm’s selloff ‘looks overdone,’ UBS analysts say
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MTU Aero Engines AG has lost $3.6 billion in market value on worries that the engines it manufactures with US firm Pratt & Whitney contain flawed components made from contaminated metal powder.
MTU shares extended a two day-rout to 23% on Tuesday — the most in the Germany company’s 18 years as a publicly-traded company — after Pratt parent RTX Corp. warned Monday that thousands of ‘geared turbofan’ engines used in Airbus SE jets must be removed to check for troublesome parts.