Rolls-Royce in record profits

Now firmly established as the world’s number two aircraft engine manufacturer (GE is number one, with Pratt & Whitney back in third place) Rolls-Royce Plc made record profits last year in spite of setbacks with the Airbus A380 and Boeing 787 projects.  A near disastrous engine blowout on a Qantas A380 cost the company £56m and the introduction of the 787 was fraught with delays.

Overall profits rose 21% to £1.16bn, while orders reached £62bn after rising 5%.  Other than the name and heritage, the Derby-based company has no connection with the BMW-owned car manufacturer.

Rolls-Royce completed one of the biggest deals in its history last year when it joined up with Mercedes-Benz's owner Daimler to buy the German engine maker Tognum for about £3bn.  Currently it has an outstanding order book for more than 5,000 engines.

Last year, about 50% of Rolls-Royce’s revenue came from civil aerospace and 20% from the marine business, with the remainder from military engines and energy.  Its long term product support contract policy ‘Total Care’ should ensure stable conditions and profitability for many years to come. www.rolls-royce.com

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