Rolls-Royce, a world-leading provider of power systems and services, has made strong progress in the first quarter of 2007, securing new engine business and continuing to grow its services revenues.
The Group announced its Preliminary Results for 2006 in February with underlying sales growth of 14 per cent and an increase in underlying profit before tax of 19 per cent to £705 million (2005 £593 million). The Group’s ability to win business in growing and global markets resulted in an increase in the order book to £26.1 billion (2005 £24.4 billion).
Finnair became the first customer for the Trent XWB, the engine being developed for the Airbus A350 XWB airliner. The Finnish flag carrier will use the sixth and latest member of the Trent family to power 11 of the new twinjets on firm order, with options for four more aircraft.
British Airways selected the Trent 800 to power up to eight additional Boeing 777-200 twinjets. The deal is potentially worth $320 million to Rolls-Royce at list prices. Engine maintenance will be covered by an extension of the airline’s existing TotalCare® agreement. British Airways already operates 16 Trent powered 777 aircraft.
Rolls-Royce announced its newest helicopter engine, the RR300, for the new R66 helicopter from launch customer, Robinson Helicopter Company, the world’s leading manufacturer of civil helicopters. Discussions are also taking place with Enstrom Helicopters, MD Helicopters and Schweizer Aircraft over future applications of the RR300.
A decision of major strategic importance for the Group’s marine business was the US Navy’s selection of four MT30 gas turbine generator sets for the first two ships in a new class of advanced surface combatant ship, the DDG-1000 Zumwalt Class destroyer. This is the second U.S. Navy programme to feature the MT30 as it has already been selected to power the first two Lockheed Martin Littoral Combat Ships.
Both the civil and defence aerospace businesses announced significant new services activities.
A Memorandum of Understanding (MoU) was signed with BAE Systems to work together to improve support to the UK Ministry of Defence (MoD) and other worldwide customers, by building on two successful availability contracts for the UK’s RB199-powered Tornado fleet.
Long-term service agreements were signed in Asia and the US. A TotalCare® agreement with Singapore Airlines covers the Trent 800 engines powering its fleet of 58 Boeing 777s. The contract is in addition to a similar maintenance deal for Trent 500 engines on the airline’s A340-500 aircraft.
Rolls-Royce now has aftermarket agreements in place with all branches of the US military, including the Coast Guard, following the signing of two contracts, worth up to $235 million over five years, with the US Air Force for propulsion aftermarket services and spares for C-130J military transport aircraft.
In the energy sector, the Group's fuel cell business acquired the assets of US-based SOFCo-EFS Holdings LLC from McDermott International Inc.. SOFCo-EFS has proven expertise in fuel processing technologies and undertakes advanced research and development in solid oxide fuel cell stacks and system integration.
Other business highlights include:
Operations and technology