Q1 in line with expectations for Rolls-Royce with modest growth predicted

AERO engine manufacturer Rolls-Royce said trading in the its first quarter had been consistent with its expectations and for the full year it has predicted modest growth in underlying revenue and good growth in underlying profit, with cash flow likely to be around breakeven.  

Since its preliminary results in February, the firm has won a £1.05bn order from International Airlines Group (IAG) for its Trent XWB engines. The package includes long-term TotalCare® service support agreements to power 18 Airbus A350-1000 aircraft.

The group has also signed multiple contracts to provide and service military transport engines for the US Air Force and US Marine Corps; and we has started construction of the state-of-the-art Core Manufacturing Facility in Derby that will produce reactor cores for the UK’s current and future Submarines Programme.

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. The group said it would continue to guide Tognum separately for 2013.

It said it expected underlying revenue and underlying profit from the operation to be broadly flat in the full year compared to 2012, unchanged from the guidance given by Tognum in March 2013.

In an organisational change, Tony Wood has been appointed President – Aerospace and will take up his new role on May 13. He replaces Mark King who has decided to resign from the company at the end of June. Wood, presently President – Marine, has worked for Rolls-Royce for 12 years and has experience in both the Civil Aerospace and Defence Aerospace businesses.

Lawrie Haynes, currently President – Nuclear, has been appointed to a new position as President – Marine & Nuclear.  

The group will publish its half year results on July 25, 2013.