Sunday 23 April 2017

Rolls-Royce wins new engine contracts totalling $2.23bn

Rolls-Royce has been testing the diesel-electric battery power system on trains in Germany and is preparing to bring it to market
Rolls-Royce has been testing the diesel-electric battery power system on trains in Germany and is preparing to bring it to market

Engineering company Rolls-Royce, under pressure after successive profit warnings, said its aero-engine business won two new contracts totalling $2.23bn.

Rolls-Royce said that it had been selected by Saudi Arabian airline SAUDIA to provide engine maintenance and servicing for its Trent 700 engines on 20 A330 aircraft under a long-term contract worth $1.3 billion.

The other contract was to supply International AirFinance Corporation with Trent 700 engines for 20 of the same jets in a $930 million deal.

The contract wins for the Trent 700 come after Rolls-Royce said earlier this month that low demand and pricing for that engine model would result in significant hits to profit in 2016.

"We welcome our customer's continued confidence in the Trent 700 as the best solution for fuel burn, emissions and noise performance," Eric Schulz, Rolls-Royce president of civil large engines, said.

Reuters

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