John Rishton, Chief Executive, said:
“In the second half of the year, revenue growth increased as we delivered 23 per cent more engines than in the first half. Margins improved, reflecting volume, mix, cost control and the IAE transaction.
“In the full year, underlying profits increased for the tenth consecutive year. We have established this record of consistent delivery while continuing to invest in people, technology and facilities.
“The strength of our order book demonstrates the confidence our customers have in our products and services. Our priorities remain: delivering on the promises we have made; deciding where to grow and where not to; and improving financial performance.
“In 2013, we expect modest growth in underlying revenue and good growth in underlying profit with cash flow around break even as we continue to invest for the future.
“Sir Simon Robertson today announced his intention to retire as Chairman ofRolls-Royce at this year’s Annual General Meeting. Simon has made an exceptional contribution over the past eight years. He has worked tirelessly on behalf of the company and his energy and enthusiasm have been an example to us all. I am delighted to welcome Ian Davis as our new Chairman and look forward to working closely with him”.
In 2012, the order book increased by four per cent, underlying revenue by eight per cent and underlying profit by 24 per cent. We delivered a record number of power systems that, typically, produce decades of aftermarket services revenue.
The priorities for the business remain the same as last year:
- Deliver on the promises we have made.
- Decide where to grow and where not to.
- Improve financial performance.
In 2012 we have made progress towards these objectives:
1. Deliver on the promises we have made
The quality of the products and services we supply is measured across the Group and has shown steady improvement. Increased focus on delivery has led to significant improvement in wide-body engines in Civil Aerospace and in our Marine products. Across the Group, we are investing in a wide range of projects that will improve operational performance and reduce cost. This includes continuing investment in modernising our IT infrastructure that is a key enabler for our business.
Significant milestones have been achieved in our major programmes.
- In Civil Aerospace, the certification of the Trent XWB engine (in February 2013) that will power the Airbus A350, the launch of the Trent 1000-TEN that will power Boeing 787s entering service from 2016 and the entry into service of the BR725 engine powering the new Gulfstream G650 corporate jet.
- In Defence Aerospace, the Short Take Off and Vertical Landing (STOVL) variant of the F35B Lightning II Joint Strike Fighter entered service with the US Marine Corps and deliveries were made to the UK MoD.
- In Marine, gas turbine power and propulsion equipment was delivered for the US Navy’s Littoral Combat Ship and the UK’s Queen Elizabeth class aircraft carriers.
- In Energy, we expanded our fleet of gas turbine compressor units through contracts for China’s West East Pipeline Project (WEPP) and the Uzbekistan section of the Asia Trans Gas (ATG) pipeline.
2. Decide where to grow and where not to
We continue to invest in capacity to fulfil our order book and in technology to expand our portfolio.
It has won a $1bn order from Singapore Airlines to supply Trent 700 engines to power 15 Airbus A330 aircraft, along with TotalCare® services support.
ZURICH, June 29, 2012 /PRNewswire/ -- Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) company, closed today on its agreement to purchase Rolls-Royce's program share in IAE International...
IAE has reached or extended agreements with legacy and new customers; recommitted to its collaboration agreement to 2045, and developed yet another iteration of its V2500 engine.