Current trading in line with expectations, guidance for the full year confirmed
Trading in the first quarter has been consistent with our expectations and, for the full year, we continue to expect modest growth in underlying revenue and good growth in underlying profit, with cash flow around breakeven. Guidance for the business segments remains unchanged.
Since the preliminary 2012 results in February, we have won a US$1.6bn order from International Airlines Group (IAG) for Trent XWB engines, with long-term TotalCare® service support, to power 18 Airbus A350-1000 aircraft; we have signed multiple contracts to provide and service military transport engines for the US Air Force and US Marine Corps; and we have started construction of the state-of-the-art Core Manufacturing Facility in Derby that will produce reactor cores for the UK's current and future Submarines Programme.
Engine Holding, the Group’s joint venture with Daimler, acquired the remaining minority shares in Tognum in March and Tognum has subsequently been de-listed. We will continue to guide Tognum separately for 2013. We expect underlying revenue and underlying profit to be broadly flat in the full year compared to 2012, unchanged from the guidance given by Tognum in March 2013.
Tony Wood has been appointed President - Aerospace and will take up his new role on May 13. He replaces Mark King who has decided to resign from the company at the end of June. Tony, presently President - Marine, has worked for Rolls-Royce for 12 years and has experience in both the Civil Aerospace and Defence Aerospace businesses.
Lawrie Haynes, currently President - Nuclear, is appointed to a new position, President - Marine & Nuclear.
Half year results
We will report the Group’s results for the six month period ending 30 June 2013 on 25 July 2013.