Rolls-Royce has announced that its Civil Aerospace segment posted underlying revenue of £8,023m and underlying operating profit of £520m for full year 2017. The company reported underlying revenue and underlying operating profit growth of 12% and 34% respectively, driven by 35% increase in large engine delivery volumes and a 12% increase in invoiced flying hours.
Underlying services revenue grew by 12% for the full year 2017. Unit cost reductions and pricing improvements: 37% reduction in Trent XWB-84 cash deficit; overall OE cash deficit stable at £1.6m, as expected given the change in production mix
Rolls-Royce reported good progress on new engine programmes during 2017: Trent 1000 TEN entering into service, Trent XWB-97 achieving certification and Trent 7000 powering Airbus A330neo first flight.
The company reported significant in-service engine issues on Trent 1000 and Trent 900, principally due to lower than expected durability of certain turbine and compressor rotor blade parts. Focus to mitigate disruption to customers, current year £227m income statement charge and £170m impact to cash flow .
