Civil Aerospace

Civil Aerospace
H1 11 H1 10 +/-
Order book (£bn)51.348.5*+6%
Engine deliveries462416+11%
Underlying revenues (£m)2,6042,294+14%
Underlying OE revenues (£m)1,047858+22%
Underlying services revenues (£m)1,5571,436+8%
Underlying profit before financing (£m)250210+19%

*Full year 2010 data

Financial   

  • New orders of £6.5bn (£2.9bn in H1 2010) contributed to a six per cent increase in the record order book. The order book contains almost 5,000 engines that will add, over time, around 250m lbs of installed thrust, or 65 per cent, to our current installed base. Significant orders in the period included:
    • Trent 700 engines and TotalCare support for 15 Airbus A330s by Singapore Airlines.
    • Trent 900 engines and TotalCare support for six Airbus A380s by Asiana Airlines.
    • Trent 1000 TotalCare support for nine Boeing 787s by Norwegian Airlines.
    • Trent XWB TotalCare support for 70 Airbus A350 XWBs by Emirates Airlines.
  • Revenues increased by 14 per cent. There was a 22 per cent growth in OE revenues, including significantly higher deliveries of wide-body and Corporate & Regional engines. Services revenues grew by eight per cent, partly helped by a better achieved USD exchange rate in the period.
  • Profit increased by 19 per cent due to increased revenues, a nine cent improvement in the achieved USD exchange rate and improved productivity. This growth was tempered by higher R&D charges, further launch costs and modest costs related to the Trent 900 event in 2010, as previously guided.

Portfolio

  • The exclusive agreement with Airbus SAS to develop a higher thrust Trent XWB engine for the extended range A350-1000 aircraft will further broaden our portfolio and strengthen our wide-body market position.
  • The Trent 1000 will power the Boeing 787 Dreamliner that enters commercial service later this year. This marks the start of engine deliveries that will generate revenues for decades to come. The Trent 1000 sets new standards in efficiency, winning seven out of the last eight Boeing 787 engine competitions.

Full Year Outlook

  • Strong growth is expected in OE revenues supported by double digit growth in engine deliveries in all sectors. Services revenues are expected to grow by mid single digits, supported by further growth in TotalCare revenues and a recovery in ‘time and materials’ services on large engines.
  • Profit is expected to increase by 20 to 25 per cent due to growth in services revenues, a better achieved USD exchange rate and improved productivity. The increase includes the anticipated increase in new programme launch costs, higher R&D charges and operational costs associated with events in Japan.
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