Blog Rolls Royce Set To Increase Large Engine..

Rolls-Royce Set To Increase Large Engine Production

Rolls-Royce has released news they will deliver around five hundred large engines this year. This will be an increase of 15% to some 355 in 2016. In the last year aerospace profit more than halved. RR has stated the underlying revenues for large engine supply at 1.6 billion with an increase of 2% and civil aerospace profit has jumped more than half to 367 billion.

The Trent 700s on the A330 have had a decreased demand but that has been offset by from the higher volumes of Trent 900s for the Airbus A380 as well as spare Trent XWBs for the A350. Rolls-Royce said that fewer overhauls due to time and material revenues being reduced, in turn contract accounting effects were also significantly lower in service revenues. Despite these strong engine production numbers the service revenue fell by 4% to 2.3 billion. This growth had offset the older power plants production. Rolls-Royce predicts the business-jet revenues will decline even further. While the civil aerospace will increase with modest revenue growth this year, mostly backed by the aftermarket sales for large engines.

The company says positive long term trends are evident but near-term uncertainty is affecting production output of older engine service activity and affecting production. Continued need for more fuel efficient and new aircraft will drive the strong widebody airframe demand. As the industry undergoes a massive replacement cycle the manufacturing schedules should prove to be resilient.

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