Record engine deliveries at Rolls-Royce overshadowed by Trent 1000 issues

Rolls-Royce Pearl 280120
Rolls-Royce Pearl 280120

Rolls-Royce has reported a £852 million loss after problems with its Trent 1000 engine overshadowed record deliveries in civil aerospace.


For its full year results, the company reported a record 510 widebody engines were delivered for the civil aerospace sector. Rolls-Royce also updated its widebody engine delivery expectations of 450 this year and 400-450 per year over the mid-term, following previously announced airframer build rate reductions.

Operating profit rose 25% to £808 million (compared to £616 million last year), which was driven largely by an improvement in the engine maker’s civil aerospace division.

Revenue increased 7% to £15.5 billion, up from £15.1 billion in the same period last year.

Related: Rolls-Royce starts production of Ultrafan demonstrator engine


Warren East, chief executive commented: “After a challenging first half, we had a good end to 2019, delivering 25% growth in full year underlying operating profit and an encouraging level of free cash flow. Our restructuring efforts gained momentum, with run-rate cost savings of £269 million.

“Civil Aerospace improved its underlying profit significantly, with record engine deliveries, good aftermarket performance and improved OE unit losses. We made further progress on the Trent 1000; cash costs are in line with guidance. We remain on target to reduce aircraft on ground to single digits by the end of Q2 2020.

“We continued to invest significantly in R&D and took important steps towards becoming a leader in low carbon technologies. We grew our electrical capabilities with the acquisitions of Siemens’ eAircraft business and a majority stake in Qinous, as well as developing new in-house hybrid-electric solutions.”

Related: Rolls-Royce reveals details of Tempest fighter jet's engine


Rolls-Royce says the outbreak of Coronavirus (COVID-19) represents a macro risk and is likely to have an impact on air traffic growth in the near term; however long term growth trends remain intact

Mr East added: There are macro risks to navigate in 2020, notably the outbreak of COVID-19. The situation is still evolving, and as such our guidance for 2020 excludes any material impact. We are monitoring developments, taking mitigating actions, and will update the market as appropriate.”

Rolls-Royce www.rolls-royce.com

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Rolls-Royce

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