Rolls-Royce expects modest growth in full-year profit and revenue

8th Nov 2013 07:11

- Modest growth in underlying annual revenue and profit- Profit guidance changed in Defence Aerospace and Marine- New contracts boost performanceRolls-Royce expects the full year to achieve modest growth in underlying revenue and underlying profit with cash flow around breakeven, according to a trading update on Friday.However, the engine manufacturer changed its underlying profit guidance in Defence Aerospace from broadly flat to modest growth and in Marine from modest growth to broadly flat.In Defence Aerospace, the company singed multiple contracts worth over $600m to provide and service military engines for various US government departments. The firm also sold 50% of its shareholding and interest in the RTM322 helicopter engine programme to Turbomeca for €293m, which is not included in the guidance for cash flow. In Marine and Power Systems, Rolls-Royce was chosen to design the propulsion system for the Royal Navy's future Type 26 Global Combat Ship. The system will feature the world's most powerful marine gas turbine, the Rolls-Royce MT30 in combination with Tognum MTU diesel gensets and Series 4000 engines.In Civil Aerospace, the group benefitted from the decision by Japan Airlines to order 31 Airbus A350 XWB aircraft, which are powered by Trent XWB engines. Lufthansa also selected Trent XWB engines worth $1.5bn, including TotalCare service support, to power 25 Airbus A350-900 aircraft. Within the Power Systems division, Tognum announced that it will expand its Research and Development Center at the MTU Aiken Plant. The investment will double the centre's development capacity with the addition of two new test cells for off-highway diesel engines.RD