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Sunday, November 28, 2021

Rolls-Royce signs $2.2bn aircraft engine deal

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Rolls-Royce has announced two new contracts worth a total of $2.2bn two weeks after issuing the latest in a series of profit warnings.

Leasing company International Air Finance Corporation, which owns the aeroplanes, is buying the engines for $930m.

Rolls-Royce has also signed a long-term servicing contract worth $1.3bn directly with SAUDIA.

It said the Trent 700 was now the clear market leader on the A330 with more than 60% of new orders over the last three years.

Eric Schulz, the firm’s president for civil large engines, said: “We welcome our customer’s confidence in the Trent 700 as the best solution for fuel burn, emissions and noise performance as well as delivering unrivalled reliability for Middle East operations.”

The announcements did not alter what Rolls-Royce said on July 6 when it issued its latest profits warning.

But analysts at Killik said they would “provide some comfort to investors”. Shares were little changed.

At that time of the warning the company, which has major bases in Bristol and Derby, blamed a number of factors including reduced demand for business jets and weaker sales in its marine market.

The firm, which has issued a series of profits downgrades over the last 12 months, said its annual group underlying profit would be between £1.3bn and £1.5bn, as much as 5% lower than it had previously suggested.

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