Civil Aerospace

Civil Aerospace
£ millions20122011Change
Order book*49,60847,3705%
Engine deliveries*66854423%
Underlying revenue6,4375,57216%
Underlying OE revenue2,9342,23231%
Underlying services revenue3,5033,3405%
Underlying profit before financing72749946%
Return on sales**11.3%9.0%2.3pp

*    Restated 2011 year-end data excluding IAE order book of £4,571m and 418 V2500 deliveries
**   By reference to underlying profit before financing costs and tax

Financial

  • The order book increased by five per cent including new orders of £10.3bn (£11.0bn in 2011). We continue to grow our wide-body market share, with Trent engines making up around 75 per cent of our order book. We remain committed to the mid-size market both as a supplier to IAE and via our planned joint venture with the IAE partners to develop the next generation of engines for this market segment. Our continued success in the corporate market is being driven primarily by our BR700 series of engines for large cabin Gulfstream and Bombardier aircraft.

    Significant orders in 2012 included:

    • Trent 700 engines and TotalCare for 54 Airbus A330s for China Eastern, Etihad, Avianca, Synergy, Garuda Indonesia, Air Pacific and Skymark.
    • Trent 900 engines and TotalCare for 11 A380s for Singapore Airlines and Skymark.
    • Trent 1000 engines and TotalCare for five Boeing 787s for Avianca and Air New Zealand.
    • Trent XWB engines and TotalCare for 30 A350s for Cathay Pacific and Singapore Airlines.
  • Revenue increased by 16 per cent. There was a 31 per cent growth in OE revenue, primarily reflecting higher deliveries of Trent and corporate engines. Services revenue grew by five per cent consistent with growth in the installed base of thrust.
  • Profit increased by 46 per cent, including £92m related to the restructured trading arrangements with IAE. Excluding these, profit increased by 27 per cent due to increased OE volume, better OE mix, services growth and unit cost improvements. This growth was tempered by a higher R&D charge due to higher spend and lower capitalisation related to major new programme activity, and by lower entry fees related to the current maturity of the Trent XWB programme.

Portfolio

  • The Trent XWB gained certification in February 2013 following a successful flight test programme on an Airbus A380 test aircraft. The Trent XWB is the world’s most efficient large jet engine and is the fastest-selling Trent engine, with orders for more than 1,200 engines already received.
  • We launched the Trent 1000-TEN that is due to enter service in 2016. This engine, which incorporates proven next generation technology from the Trent XWB, will be capable of powering all versions of the Boeing 787.
  • The BR725-powered Gulfstream G650 entered service early in 2013, and the AE3007C-powered Cessna Citation TEN is due to enter service later this year.
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