The order book contracted by 15 per cent reflecting the budgetary pressures on our major customers in Europe and North America.The net order intake of £1.6 billion (2011 £1.8 billion) includes cancellations of £0.4 billion, principally the proposed cancellations of a number of contracts for C-27J aircraft, including those by the US Department of Defense.
Despite the challenging environment, we continue to see opportunities both in our traditional markets and the developing economies.
Revenue increased by eight per cent, reflecting a 12 per cent increase in OE revenue and a five per cent increase in services revenue. However, adjusted for the non-recurrence of the £60 million Strategic Defence and Security Review (SDSR) benefit in 2011, services revenue increased by 11 per cent. This highlights how our large installed base continues to provide services opportunities, as customers seek to optimise the efficiency of their aircraft. Profit increased by seven per cent. Adjusted for the SDSR benefit in 2011, profit increased by 28 per cent due to increased OE volumes and mix, growth in services, unit cost improvements and a lower R&D charge.
US$155bn - Defence engine market
US$260bn - Defence services market
Rolls-Royce remains the second largest provider of defence aero-engine products and services globally with 18,000 engines in the service of 160 customers in 103 countries. Our engines power aircraft in every major sector, including: transport; combat; patrol; trainers; helicopters; and unmanned aerial vehicles (UAVs). The provision of engine support through MissionCare™ continues to generate significant revenues across a wide range of engines. The US Armed Forces placed contracts to support engines powering C-130, V-22, T-45 Goshawk aircraft and Kiowa Warrior helicopters totalling over US$560 million.
- US$1billionof contracts for OE and services for military transport, trainer and helicopter engines for the US Army,
- US Air Force, US Marine Corps and US Navy
- A US $315million contract for LiftSystems for the F-35BSTOVL variant of the Lightning II aircraft
- Launch of fuel-saving initiative with theR oyal Australian Air Force on C-130 operations
- A £100 million contract extension to maintain engines for C-130 and VC-10 aircraft from the UK MoD
- An order for new Adour engines to power Hawk trainers for the Royal Saudi Air Force