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Rolls Royce - 4th Quarter Review

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Rolls-Royce Plc
: 22 December, 2006  (New Product)
Quarterly news update from Rolls-Royce: fourth quarter review, 2006

Rolls-Royce, a world-leading provider of power systems and services, continued to make good progress during the fourth quarter of 2006.

The Group began the process of considering options for potential new facilities to meet growth opportunities across its global business sectors. As part of this evaluation process, it has issued requests for qualification to eight US states. Other locations around the world will also be asked to compete.

In Singapore, the company received the Distinguished Partner in Progress Award from the Economic Development Board in recognition of its ‘exemplary contributions' to the city state. Also in South East Asia, Rolls-Royce joined with Metalysis Limited to launch Malaysia's first tantalum processing and research and development facility.

In India, Rolls-Royce built on 50 years of collaboration with Hindustan Aeronautics Ltd. with an agreement to pursue collaboration on engine component design and manufacturing in India.

During the fourth quarter, the Group also achieved significant milestones in each business sector.

Civil Aerospace

The sixth member of the Trent family, the Trent XWB will be developed to power all versions of the Airbus A350 XWB, and the A380, powered by the Trent 900, received its Type Certificate from the US FAA and European EASA airworthiness authorities.

Singapore Airlines became the first operator to select four Trent variants with the Trent 700 for its new fleet of 19 Airbus A330s. The engines will be covered by a TotalCare® long-term services agreement with deliveries commencing in 2009.

Monarch selected the Trent 1000 to power its new fleet of six firm Boeing 787s, and leasing company LCAL expanded its order for Trent 1000s to power nine firm Boeing 787s and 11 more on purchase rights. All the engines will be supported by lifetime TotalCare agreements.

Lufthansa selected the Trent 700 to power an additional five A330s, and increased its Trent 500 powered A340-600s by seven aircraft. Services contracts worth more than £100 million to provide complete engine overhaul over the next five years for the RB211-535 engines powering Boeing 757 aircraft were awarded by two leading UK leisure airlines - Thomas Cook Airlines UK Ltd and First Choice Airways.

The IAE V2500 secured deals from customers in China, Brazil and Singapore to power 73 Airbus A320-family aircraft, which will generate $710 million of business for Rolls-Royce.

Rolls-Royce celebrated three milestones in the corporate and regional sector: the 3,000th engine delivery to Gulfstream, the 10th anniversary of the AE 3007C powered Citation X business jet, the fastest business jet in service, and an Embraer award as its 2006 Supplier of the Year for mechanical/propulsion systems.


Rolls-Royce will form part of an industry team working on the ‘Taranis' programme to develop a world-class Unmanned Air Vehicle technology demonstrator under a £124 million contract awarded by the UK Ministry of Defence.

The GE Rolls-Royce Fighter Engine Team held a successful Preliminary Design Review for the F136 engine being developed as an interchangeable main propulsion unit for the F-35 Lightning II Joint Strike Fighter (JSF) aircraft. A Memorandum of Understanding (MoU) on the next phase of the aircraft programme was signed between the UK and US governments. As well as the F136, Rolls-Royce is developing the Rolls-Royce LiftSystem® for the STOVL version of the aircraft.

Rolls-Royce and Turbomeca extended Europe's longest-running aerospace joint venture by renewing their collaboration on the market-leading RTM322 Helicopter engine.

The US Navy extended its engine services contract for the F405 engines powering the T-45 training aircraft for a fourth year. The contract is worth $65 million a year.

Rolls-Royce and Serco, the leading international service company, signed an MoU to deliver cutting edge services to the MoD in support of the Defence Industrial Strategy.


Rolls-Royce secured its largest offshore order, worth around £60 million from Farstad Shipping, which ordered four new anchor handling ships, designed by Rolls-Royce and featuring many of the company's products.

Rolls-Royce is to provide the Government of South Australia with a A$50m shiplift which will be a key element of a major new shipbuilding and ship repair development at Techport Australia, in Adelaide.

One of the world's most innovative offshore vessels, the Rolls-Royce designed Olympic Octopus, was delivered to its owner Olympic Shipping. The ship includes Rolls-Royce equipment that increases crew safety on deck and reduces noise.

Rolls-Royce, as part of a team with Kellogg Brown & Root (KBR), won a A$50 million contract from the Australian Department of Defence to support four Royal Australian Navy ships for seven years, with options for a further five.


The first Trent orders were received from electric utilities in the US and Belgium. Braintree Electric Light Department in Massachusetts signed a contract for two Trent 60 Wet Low Emissions (WLE) power generation packages while in Belgium SPE selected two Trent 60 Dry Low Emissions (DLE) units.

The Group's fuel cell business established its US headquarters and technology centre on the campus of the Stark State College of Technology in Ohio and announced a partnership with Ohio-based American Electric Power to test and evaluate prototype fuel cell systems.

Operations and technology

The 25th University Technology Centre (UTC), and the third in Germany, was launched at the Technical University in Darmstadt to specialise in the aerothermal interaction between the combustor and turbine. This discipline shapes the engine's environmental performance, which is an increasingly vital driver for the aerospace industry. Worldwide there are now 27 UTCs.

Community relations

The third year of the Rolls-Royce Science Prize, worth £120,000, has been launched. The prize is part of the group's continuing effort to increase the profile of science and engineering to avoid skills shortages in the future. The prize is open to teachers of all ages and disciplines in schools and colleges in the UK and Republic of Ireland.

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