Rolls-Royce statement regarding Emirates order
Wednesday, 11 June 2014
Rolls-Royce has been advised by Airbus of the cancellation of an Emirates' order for 70 A350 aircraft. While disappointed with this decision, we are confident that the delivery slots which start towards the end of this decade vacated by Emirates will be taken up by other airlines. Demand for the Airbus A350 remains strong, with more than 700 aircraft and 1,400 Trent XWB engines already sold.
We retain a close working relationship with Emirates and continue to support their 38 Rolls-Royce powered wide body aircraft currently in service.
As a result of today's announcement, our order book will reduce by around 3.5% or £2.6bn. The order for 70 A350 aircraft was confirmed in 2007 as part of a larger $8.4bn announcement relating to a total of 120 Aircraft, all with TotalCare services. The options for the additional 50 aircraft, and the TotalCare contracts were not included in the amount captured in our Order Book.
About Rolls-Royce Holdings plc
- Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.
- Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy & Nuclear and Power Systems (RRPS). On 7 March 2014, Daimler announced their intention to exercise their option to sell their 50% share in RRPS to Rolls-Royce Holdings plc. On 16 April 2014, the valuation was agreed and the transaction is expected to complete within the coming months, subject to the usual regulatory approvals. On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
- Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
- Our business is focused on the 4Cs:
- Customer - placing the customer at the heart of our business
- Concentration - deciding where to grow and where not to
- Cost - continually looking to increase efficiency
- Cash - improving financial performance.
- Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.
- In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers with the forefront of scientific research.
- Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
- The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes.
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