Things Are Revving up at Rolls-Royce Holding
LONDON -- Aero engine-maker Rolls-Royce Holdings today confirmed that its first quarter has been in line with expectations, reiterated guidance for the full year, and announced some key personnel changes.
The company says it expects modest growth in underlying revenue and good growth in underlying profit, with cash flow around break-even. Half-year results are due in July.
But perhaps the most interesting snippet in today's brief release was that Tony Wood has been appointed president of the aerospace division. He assumes the new role on May 13 and replaces Mark King after the latter's short stint in the role.
Shares in Rolls-Royce picked up in late April after it announced the sale of its interest in the RTM322 helicopter engine program to Safran subsidiary Turbomeca. Rolls-Royce currently owns 50%, which will now be transferred in its entirety over the next three years to Turbomeca, who will take on full ownership of and responsibility for the project. Rolls-Royce will receive a payment of €293 million for its stake in the RTM322 project.
Since the preliminary 2012 results in February, Rolls Royce has also won a US$1.6 billion order from International Airlines Group for Trent XWB engines to power 18 Airbus A350-1000 aircraft. The company says it's also signed multiple contracts to provide and service military transport engines for the U.S. Air Force and U.S. Marine Corps.
Meanwhile, engine holding, the group's joint venture with Daimler, acquired the remaining minority shares in Tognum in March and Tognum has subsequently been de-listed. Rolls-Royce will continue to manage Tognum separately for 2013, during which the company says it expects underlying revenue and underlying profit to be broadly flat compared to 2012.
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