President - Defence Aerospace
|Underlying profit before financing costs
|Net assets £m||(59)||51||69||25||179|
|Order book - firm £bn||3.1||3.0||2.4||2.1||2.6|
Sales analysis 2005:
- Original equipment
Highlights of the year
Good progress was made with the Group's development work for the US Department of Defense's (DoD's) Joint Strike Fighter programme.
AirTanker was awarded preferred bidder status for the UK's Future Strategic Tanker Aircraft programme.
The first series of tests was completed for the TP400-D6 engine for the Airbus A400M military transport aircraft.
Mission Ready Management Solutions services contracts were signed with the UK Ministry of Defence (MoD) and the US DoD covering combat, transport and trainer aircraft engines.
A new Operations Centre was opened in Bristol as part of the growing in-service support business for military engines.
The Group's defence aerospace business is broadly based, with a strong portfolio of products and services covering the key defence aerospace market sectors. This enables the Group to make good progress in spite of the volatility that may be experienced on individual programmes, as exemplified by the uncertainties surrounding the alternate engine for the Joint Strike Fighter, following the recent US Quadrennial Defense Review.
In 2005, Rolls-Royce continued to develop its range of engine programmes and customer services. More than 3,000 hours of testing were completed on the LiftFan system for the US DoD's Joint Strike Fighter programme.
In December, an agreement was signed by the governments of the Kingdom of Saudi Arabia and the UK, under which the Royal Saudi Air Force will acquire Eurofighter Typhoon aircraft, powered by the EJ200 engine.
In the transport sector, Rolls-Royce is a member of the European consortium that successfully completed the first series of tests for the TP400-D6 turboprop engine being developed for the A400M military transport aircraft.
The US DoD approved full production for the V-22 Osprey aircraft, powered by Rolls-Royce AE 1107C-Liberty engines and placed equipment and services orders related to the engine worth more than US$64 million.
Rolls-Royce is a 20 per cent shareholder in the AirTanker consortium, which was awarded preferred bidder status for the Future Strategic Tanker Aircraft programme by the UK MoD.
Australia selected the Rolls-Royce Turbomeca RTM322 engine to power its NH90 helicopter fleet and the first RTM322 to be assembled under licence by KHI, in Japan, was delivered to the Japan Defense Agency and the Japan Maritime Self-Defense Force.
The provision of services contributed 55 per cent of the Group's defence sales. New services contracts announced during the year included: a £185 million service contract for the RB199 engines which power the MoD's fleet of Tornado aircraft; a renewal of the contract for the support of the F405 (Adour) engine in the US Navy's T-45 training aircraft worth US$63 million; a £57 million contract to support the EJ200 engines that power the UK's Typhoon fleet; and a £40 million contract to support the UK's fleet of AE 2100 engines that power the C-130J. A new Operations Centre was opened in Bristol as part of the growing in-service support business for military engines.