UK: Rolls-Royce Continues to Grow

In 2012, Rolls-Royce continued to grow underlying profits as it has done every year for the past decade. During that time the Group has doubled its revenues, trebled its order book and more than quadrupled its profits.

The group’s Marine order book increased 44 per cent including new orders of £3.3 billion (2011 £2.1 billion). This includes the £1.1 billion order by the UK MoD to deliver reactor cores for its future fleet of nuclear-powered submarines. Offshore orders reflected improved demand in the oil and gas sector, especially for drill ships and support vessels in Brazil. This was partially offset by continued weak order flow in the merchant sector.

Revenue reduced by one per cent, reflecting increased pricing pressure and adverse foreign exchange movements. Both OE and services revenue improved in the second half, reflecting improvement in the offshore sector and a better capture of the services market resulting from the recent expansion of our global network of services centres.

Profit increased by two per cent due to better revenue mix and cost reduction, partially offset by pricing pressures and adverse foreign exchange movement.

Highlights

• £147 million in new orders from Brazil for drill ships and highly complex offshore vessels
• £119 million of contracts to design and equip ten offshore supply vessels for COSCO, Farstad and Hyundai
• First contract for MT30 gas turbine outside of US and UK home markets – chosen by Republic of Korea Navy for future frigate
• US Navy contract to power the two latest Littoral Combat Ships
• MT7 gas turbines chosen for US Navy’s future hovercraft fleet
• World’s first gas-powered tug commissioned and world’s first gas-powered cargo vessel entered service
• £1.1 billion order for naval nuclear reactor core programmes

2012 full year results

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Press Release, March 1, 2013