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RNS Number : 3410J
Rolls-Royce Holdings plc
11 June 2014
11 June 2014
ROLLS-ROYCE STATEMENT REGARDING EMIRATES ORDER
Rolls-Royce has been advised by Airbus of the cancellation of an
Emirates' order for 70 A350 aircraft. While disappointed with this
decision, we are confident that the delivery slots which start
towards the end of this decade vacated by Emirates will be taken up
by other airlines. Demand for the Airbus A350 remains strong, with
more than 700 aircraft and 1,400 Trent XWB engines already
sold.
We retain a close working relationship with Emirates and
continue to support their 38 Rolls-Royce powered wide body aircraft
currently in service.
As a result of today's announcement, our order book will reduce
by around 3.5% or GBP2.6bn. The order for 70 A350 aircraft was
confirmed in 2007 as part of a larger $8.4bn announcement relating
to a total of 120 Aircraft, all with TotalCare services. The
options for the additional 50 aircraft, and the TotalCare contracts
were not included in the amount captured in our order book.
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to create better power for a changing
world via two main business segments, Aerospace and Marine &
Industrial Power Systems (MIPS). These business segments address
markets with two strong technology platforms, gas turbines and
reciprocating engines, for use on land, at sea and in the air.
2. Aerospace comprises Civil Aerospace and Defence Aerospace.
MIPS comprises Marine, Energy & Nuclear and Power Systems
(RRPS). On 7 March 2014, Daimler announced their intention to
exercise their option to sell their 50% share in RRPS to
Rolls-Royce Holdings plc. On 16 April 2014, the valuation was
agreed and the transaction is expected to complete within the
coming months, subject to the usual regulatory approvals. On 6 May
2014 Rolls-Royce announced it had signed an agreement to sell its
Energy gas turbine and compressor business to Siemens for a GBP785m
cash consideration. On completion, expected before the end of
December 2014, Rolls-Royce will receive a further GBP200 million
for a 25 year licensing agreement.
3. Rolls-Royce has customers in more than 120 countries,
comprising more than 380 airlines and leasing customers, 160 armed
forces, 4,000 marine customers, including 70 navies, and 1,600
energy and nuclear customers.
4. Our business is focused on the 4Cs:
-- Customer - placing the customer at the heart of our business
-- Concentration - deciding where to grow and where not to
-- Cost - continually looking to increase efficiency
-- Cash - improving financial performance.
5. Annual underlying revenue was GBP15.5 billion in 2013, around
half of which came from the provision of aftermarket services. The
firm and announced order book stood at GBP71.6 billion at 31
December 2013.
6. In 2013, Rolls-Royce invested GBP1.1 billion on research and
development. We also support a global network of 31 University
Technology Centres, which position Rolls-Royce engineers with the
forefront of scientific research.
7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
8. The Group has a strong commitment to apprentice and graduate
recruitment and to further developing employee skills. In 2013 we
employed 379 graduates and 288 apprentices through our worldwide
training programmes.
For further information, please contact:
Investors:
Simon Goodson
Director - Investor Relations
Rolls-Royce plc
Tel: +44 (0)20 7227 9237
Email: simon.goodson@rolls-royce.com
Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel: +44 (0)20 7227 9163
Mobile +44 (0)7974 918 416
Email: richard.wray@rolls-royce.com
www.Rolls-Royce.com
This information is provided by RNS
The company news service from the London Stock Exchange
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