£3,040m
Civil aerospace sales 2004
£170m
Civil aerospace underlying profit before interest 2004
Our broad product range provides power for more than 30 different
civil aircraft types, for international airlines, regional airlines
and corporate operators.
We strengthened our presence in the civil aero-engine industry during 2004, through a combination of strong positions on the new aircraft under development (Airbus A380 and Boeing 7E7, now renamed the 787) and a growing market share, including a market-leading position on modern wide-bodied aircraft. Overall we achieved a record market share of 40 per cent for orders announced during the year.
Engine deliveries were higher than originally anticipated, at 824, reflecting a recovery from the ‘trough’ year in 2003, when we delivered 746 engines. We expect continued growth in engine deliveries in 2005.
The corporate jet market showed signs of recovery in 2004. We expect this to continue in 2005, whereas the regional market, for 50 seat aircraft, is expected to remain depressed.
The Rolls-Royce civil fleet flying hours increased by 15 per cent compared to 2003, as a result of a recovery in world traffic growth and increased fleet size. The Trent 500 engine passed the one million flying hours mark in December.
Our success in the modern widebody sector, with a 50 per cent market share, has been further reinforced by our launch position on the Boeing 787. This is important as the aircraft addresses a growing sector of the civil market, which we anticipate will require almost US$100 billion of new engines in the next 20 years.
We secured significant new risk and revenue sharing partnerships on the Trent 1000 programme. In Japan, MHI joined KHI, our long-term partner on the Trent programme, between them taking a 15 per cent share in the Trent 1000 programme.
Our strategy to offer innovative long-term services through TotalCare and CorporateCare has continued to be successful, with £1 billion of contracts signed during the year taking coverage to 38 per cent of the fleet. The 500th customer of Aeromanager, the e-business portal which provides users access to a broad
range of aero-engine aftermarket services, was signed up recently. In addition, we enhanced our service support infrastructure with the Derby 24/7 Operations Room, which went live in March 2004. This provides an integrated decision support system, co-ordinating data from aircraft, engine and overhaul shops, with logistics support and engineering knowledge.
Services sales increased by 25 per cent, to £1.8 billion, representing 59 per cent of civil aerospace sales.
In January 2005, Boeing announced the closure of its 717 line, an aircraft powered exclusively by our BR715 engine. The programme had been subject to speculation for some time and we had already taken a prudent approach to our modest financial exposure in our 2004 results.
| Civil aerospace | 2004 | 2003 | 2002 | 2001 | 2000 |
| Turnover £m | 3,040 | 2,694 | 2,739 | 3,443 | 3,150 |
| Underlying PBIT £m | 170 | 131 | 150 | 347 | 332 |
| Net assets £m | 1,142 | 1,099 | 1,219 | 1,124 | 1,116 |
| Order book – firm £bn | 14.1 | 13.4 | 12.2 | 10 | 9.4 |
| Engine deliveries | 824 | 746 | 856 | 1,362 | 1,091 |
| Installed jet engine base | 10,970 | 10,450 | 9,910 | 9,212 | 8,322 |
| Employees | 20,100 | 19,800 | 21,100 | 23,900 | 24,600 |
We strengthened our presence in the civil aero-engine industry during 2004, through a combination of strong positions on the new aircraft under development (Airbus A380 and Boeing 7E7, now renamed the 787) and a growing market share, including a market-leading position on modern wide-bodied aircraft. Overall we achieved a record market share of 40 per cent for orders announced during the year.
Engine deliveries were higher than originally anticipated, at 824, reflecting a recovery from the ‘trough’ year in 2003, when we delivered 746 engines. We expect continued growth in engine deliveries in 2005.
The corporate jet market showed signs of recovery in 2004. We expect this to continue in 2005, whereas the regional market, for 50 seat aircraft, is expected to remain depressed.
The Rolls-Royce civil fleet flying hours increased by 15 per cent compared to 2003, as a result of a recovery in world traffic growth and increased fleet size. The Trent 500 engine passed the one million flying hours mark in December.
Our success in the modern widebody sector, with a 50 per cent market share, has been further reinforced by our launch position on the Boeing 787. This is important as the aircraft addresses a growing sector of the civil market, which we anticipate will require almost US$100 billion of new engines in the next 20 years.
We secured significant new risk and revenue sharing partnerships on the Trent 1000 programme. In Japan, MHI joined KHI, our long-term partner on the Trent programme, between them taking a 15 per cent share in the Trent 1000 programme.
Our strategy to offer innovative long-term services through TotalCare and CorporateCare has continued to be successful, with £1 billion of contracts signed during the year taking coverage to 38 per cent of the fleet. The 500th customer of Aeromanager, the e-business portal which provides users access to a broad
range of aero-engine aftermarket services, was signed up recently. In addition, we enhanced our service support infrastructure with the Derby 24/7 Operations Room, which went live in March 2004. This provides an integrated decision support system, co-ordinating data from aircraft, engine and overhaul shops, with logistics support and engineering knowledge.
Services sales increased by 25 per cent, to £1.8 billion, representing 59 per cent of civil aerospace sales.
In January 2005, Boeing announced the closure of its 717 line, an aircraft powered exclusively by our BR715 engine. The programme had been subject to speculation for some time and we had already taken a prudent approach to our modest financial exposure in our 2004 results.