Defence Aerospace

Defence Aerospace
FY Review - £ million20112010Change
Order book6,0356,522- 7%
Engine deliveries814710+ 15%
Underlying revenue2,2352,123+ 5%
Underlying OE revenue1,1021,020+ 8%
Underlying services revenue1,1331,103+ 3%
Underlying profit before financing376309+ 22%


The order book declined by seven per cent as OE deliveries exceeded order intake, reflecting the pressures on defence budgets in Europe and the USA. However, new orders of £1.8bn in the year demonstrate that there are still opportunities for growth in both traditional and in developing markets. Significant orders included:

  • Two major service contracts, worth almost US$250m for AE2100 engines powering C-130J military transport aircraft for the US and UK armed forces.
  • A US$100m MissionCare contract from the US Department of Defence to provide support for F405 (Adour) engines on T-45 training aircraft.

Revenue grew by five per cent benefiting from increased OE deliveries of eight per cent, reflecting LiftSystem, AirTanker, and Military Transport production increases, and a three per cent increase in services revenue, principally due to the impact of the SDSR settlement and increases in fleet sizes for C-130J and V-22 aircraft. 

Profit grew by 22 per cent as a result of increased revenue, cost reduction programmes and the £60m benefit of the SDSR settlement.


  • In February, funding for the development programme of the F136 engine for the JSF in which Rolls-Royce was a 40 per cent partner, was terminated by the US Department of Defense.
  • In May, the TP400 engine for the Airbus A400M military transport aircraft received civil certification from European Aviation Safety Agency (EASA). The programme has amassed over 8,000 flying hours as part of the flight test programme. Deliveries for the first production engines are due to begin in 2012 as part of the initial order of 180 aircraft.
  • In the combat sector, the LiftSystem for the STOVL variant of the JSF achieved its ‘Initial Service Release’. In October, two F-35B aircraft accomplished 72 short take-offs and vertical landings on the USS Wasp during sea trials. In January 2012, probationary status was lifted for the F-35B and the first STOVL aircraft were delivered to the customer.
  • The Eurofighter Typhoon was deployed on combat operations for the first time as part of the NATO operation in Libya, displaying outstanding levels of performance and reliability. During 2011, we delivered the 750th EJ200 engine on behalf of Eurojet for the Eurofighter programme.
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