Rolls-Royce repeats forecast for strong profit growth
While European carriers, aside from easyJet and Ryanair, continue to struggle for profits, the likes of Emirates, Cathay Pacific and Brazil's TAM are expanding rapidly, generating orders for Rolls-Royce's Trent engines. In an interim management statement published on Friday ahead of the company's annual general meeting, the Derby-based firm said it continued to expect "good growth in underlying revenue and underlying profit", the Guardian reports.
Rolls-Royce specialises in engines for twin-aisle, long-distance aircraft such as the Airbus A330 and A380. Its Trent XWB engine, for the yet-to-be-launched Airbus A350 aircraft, recently underwent its first test flight, attached to the wing of an A380. Civil aerospace accounts for around half of Rolls-Royce's revenues, generating sales of £5.6bn last year with an order book worth £51.9bn.
Fuel efficiency is a key issue for airlines grappling with volatile energy bills that account for around a third of the industry's costs. According to the International Air Transport Association, the industry's fuel bill will be $198bn (£122bn) this year, up from $178bn in 2011 and more than four times the total in 2003. That has spurred demand for technology such as the new A320neo short haul jet and the Trent XWB engine, which is 15% more fuel efficient than its predecessors and is Rolls-Royce's fastest-selling engine.
Last year Rolls-Royce reported a 4% rise in underlying revenues to £11.2bn. Pre-tax profits rose by 21% to £1.1bn.
Read more http://www.guardian.co.uk/