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ROLLS-ROYCE POWER SYSTEMS MEETS FINANCIAL GOALS

ROLLS-ROYCE POWER SYSTEMS MEETS FINANCIAL GOALS

Friday, August 6, 2021 

Rolls-Royce's Power Systems business unit has met revenue and earnings expectations in the first half of 2021 with revenue in line with the comparative period of the previous year and improvement in sales and order intake.

“Our financial results are in line with our expectations,” said Louise Öfverström, CFO of Rolls-Royce Power Systems.

At £1.18 bn, revenue was broadly in line with last year's comparative period (£1.21 bn, while adjusted profit increased by £8m to £41 m. Adjusted return on sales was 3.5% (comparative period: 2.7%), reflecting the economic recovery currently underway, and a 19% improvement in order intake in the first half bodes well for continued progress.

“We responded to the pandemic with quick and decisive actions, protecting our employees from infection as best we can and continuing to run our business successfully despite adverse conditions. We have also made unswerving progress in transforming the company into a solution provider with a view to emerging even stronger from the crisis,” said Andreas Schell, CEO of Rolls-Royce Power Systems.

“The 13 market segments in which we operate are reacting at different speeds and with differing levels of response, and this is once again proving to be a stabilizing factor in our business model,” said Öfverström.

In new sales of mtu products and solutions, Rolls-Royce Power Systems is seeing an increasing investment appetite in its customer base.  The commercial shipping market appears to be taking more time to recover, with pandemic-related travel restrictions still inhibiting the transport sector, though the Marine and Government business grew in particular for mtu propulsion systems for yachts.

The Rolls-Royce business unit has had climate-friendly products in its portfolio for some time now. In July, Power Systems presented its ambitious goals in moving towards climate neutrality, with new-technology products planned to cut greenhouse gas emissions by 35% of 2019's levels by 2030 and the company planning to be fully net-zero carbon in 2050 in line with Rolls-Royce's overall strategy, using science based standards. This is to be made possible by energy solutions using fuel cells powered by sustainably produced hydrogen, and by engines certified for running on sustainable fuels.

Rolls-Royce Power Systems expects business to continue to recover in the second half of 2021 thanks to the increased order intake, although new orders are recovering at a slightly slower pace than expected.

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