Tag Archives: Airbus
Rolls-Royce Holdings Plc 2019 Full Year Results
Warren East, Chief Executive commented: “After a challenging first half, we had a good end to 2019, delivering 25% growth in full year underlying operating profit and an encouraging level of free cash flow. Our restructuring efforts gained momentum, with run-rate cost savings of £269m. Civil Aerospace improved its underlying profit significantly, with record engine deliveries, good aftermarket performance and improved OE unit losses. We made further progress on the Trent 1000; cash costs are in line with guidance. We remain on target to reduce aircraft on ground to single digits by the end of Q2 2020.
We continued to invest significantly in R&D and took important steps towards becoming a leader in low carbon technologies.
We grew our electrical capabilities with the acquisitions of Siemens’ eAircraft business and a majority stake in Qinous, as well as developing new in-house hybrid-electric solutions.”
- Strong 2019 underlying operating profit driving FCF; reinforcing our confidence for 2020
- Good end to 2019: strong Civil Aerospace aftermarket; better Power Systems trading in Q4
- Underlying core operating profit up 25% to £810m; reported group operating loss £(852)m
- Core FCF £911m led by higher profit and reflecting £173m Trent 1000 insurance receipts
- £0.5bn improvement in net cash* position to £1.4bn; gross debt reduced by £1.1bn
- Trent 1000 in-service cash costs £578m; £1.4bn exceptional charge in 2019 results
- Trent 1000 guidance unchanged from November trading update
- Record widebody engine deliveries; 14% lower OE unit loss; 64% share of new orders
- Defence: record £5.3bn order intake driving 26% order book growth and healthy cash flow
- Power Systems: revenue up 4% & operating margin +90bps despite market challenges
- 2020: underlying operating profit up ~15%; at least £1bn FCF; excl. any material COVID-19 impact
- Remain confident in mid-term target of at least £1 per share of FCF (>£1.9bn FCF)
COMMENTING ON ROLLS-ROYCE PLC’S ACTIVITIES IN AFRICA, PATRICK REGIS, PRESIDENT FOR AFRICA & MIDDLE EAST, SAID:
“Africa is entering a new era buoyed by the promise of free trade, open skies and resilient growth. Home to the world’s fastest-growing aviation market and set to influence the shape of global energy trends, Africa is in a unique position to pursue innovative clean energy technologies. As we enter this new decade, we are focused on growing our presence across the continent and partnering with Africa’s dynamic and forward-looking policymakers, investors and industry leaders to help close the deficit in electrification and support a more sustainable industry powered by innovation and collaboration.”
ROLL-ROYCE CIVIL AEROSPACE DIVISION – AFRICA – OPERATIONAL UPDATE
In 2019:
· We delivered 17 aircraft, with entry into service:
o Air Senegal – 2x A330neo
o Air Mauritius – 2x A330neo
o Egyptair – 6x Boeing 787 Dreamliners
o SAA – 2 x A350
• We have 75 aircraft in service and 35 on order
• Our average fleet age is 5.2 year in service
• Total number of Customers: 20 in 14 countries
• Market share of widebody passenger aircraft in service is 50%
• Market share of widebody passenger aircraft backlog is 100%
What to expect in 2020
• Entry into Service:
o Uganda Airlines x2 A330neo
o Ethiopian x 2 A350
o Rwandair x 2 A330neo
2019 FULL YEAR GROUP HIGHLIGHTS
Financial:
- Both Group and core underlying operating profit increased 25% to £808m and £810m respectively; led by a £195m organic improvement in Civil Aerospace underlying operating profit to £44m and underlying profit growth in Power Systems of 15% following better Q4 trading
- Strong Group free cash flow (FCF) of £873m (2018: £568m) and core FCF £911m (2018: £648m), driven by improved underlying operating profit and Civil aftermarket cash margin; £578m Trent 1000 in-service cash costs partly offset by £173m insurance receipt
- FCF before working capital movement (inventory, receivables & payables), insurance receipts and Trent 1000 costs was £747m, 79% higher than the prior year (2018: £418m)
- Trent 1000 exceptional programme charge of £1,361m consistent with our November trading statement, driving reported operating loss of £(852)m (2018: £(1,161)m)
- Core R&D cash spend increased modestly to £1,108m; good progress on electrical strategy including acquisition of Siemens’ eAircraft business and strengthening of hybrid capabilities in Power Systems; small modular reactor (SMR) development progressing following UK Government matched funding; investment in future opportunities in Defence (Tempest, Future Vertical Lift, B-52)
- Net cash excluding lease liabilities improved to £1,361m (2018: £840m); gross debt £1.1bn lower
Operational:
- Civil Aerospace: record 510 widebody engines delivered; further progress in reducing average widebody OE loss, down 14% to £1.2m; 6% growth in large engine installed fleet to 5,029 with engine flying hour growth of 7%. Widebody market share of 64% achieved on new orders in 2019
- Power Systems: revenues up 4%; strong power generation growth and market share gains in Asia; increased services penetration; underlying operating profit margin up 90bps to 10.1%
- Defence: excellent performance in 2019 on both orders and cash flow; record order intake of £5.3bn and book-to-bill ratio of 1.6x driving healthy cash flow; 499 aero engines delivered
- ITP Aero: good underlying revenue growth of 21% and strong profit growth to £111m
- Restructuring plan on track; 2,900 cumulative headcount reduction with run rate cost savings of £269m achieved since the programme commenced in June 2018
Civil Aerospace in-service performance:
- Trent XWB now our second largest installed fleet; leading engines now in their fifth year in service. Fleet leader has flown over 22,000 hours without a shop visit; Trent XWB-84 OE deficit reduced by over 20% in 2019 and remains on track to reach breakeven by the end of 2020
- Trent 1000: roll-out of technical fixes progressing well, further actions underway to reduce customer disruption; in-service cash costs unchanged at £2.4bn across 2017-23. AOG reduction to single-digit by end of Q2 2020, unchanged since November update
- Design progressing on track for the improved Trent 1000 TEN high pressure turbine (HPT) blade, the last major issue to resolve; certification of this component still expected in the first half of 2021
Market environment: mid-term ambition of £1 FCF per share remains supported
- Updated widebody engine delivery expectations of 450 in 2020 and 400-450 per year over the mid-term, following previously announced airframer build rate reductions
- Despite challenges in certain Power Systems end markets, growth expected to continue led by mission-critical power generation, rising services penetration and further geographical expansion
- Defence targeting a number of attractive mid-term growth opportunities, particularly in the US where we are well positioned
- The outbreak of COVID-19 represents a macro risk and is likely to have an impact on air traffic growth in the near term; however long term growth trends remain intact
SAA Offers Irresistible Fares To Major Destinations
Johannesburg, 27 February 2020 – South African Airways (SAA) is offering irresistible fares to major destinations.
“At South African Airways, the time for change has come. Change that sets a new flight path and prepares our business for take-off. We’re changing our route network to be smarter and more efficient whilst ensuring our best customer service. Most importantly though, is that we’re changing to keep you flying,” SAA said in its first advertising campaign since the business rescue process began in December 2019.
SAA is offering customers three days to take advantage of competitive fares to New York, London, Washington DC, Perth, Frankfurt, Blantyre, Dar es Salaam, Kinshasa, Harare, Lilongwe, Lagos, Lusaka, Livingstone, Maputo, Mauritius, Nairobi, Victoria Falls and Windhoek. The fare deals are available in Economy Class as well as for travel in Business Class.
From Wednesday, February 26, to Friday, February 28, travellers can book all-inclusive return flights to a number of regional and international destinations including New York and London from R8999, and Lagos and Lusaka from R4554. Customers can book on www.flysaa.com or contact their nearest travel agent. T’s and C’s apply.
The airline’s revised route network – which comprises of its most successful routes, will ensure customers keep reaching their destinations while enjoying SAA’s 4-star experience along the way.
SAA Brings Miss Universe back home Aboard New A350-900 Aircraft
JOHANNESBURG, 8 February 2020 – South African Airways (SAA) was honoured to bring Miss Universe 2019, Zozibini Tunzi back home aboard its brand new Airbus A350-900 from New York on Saturday.
Her sparkling presence aboard SA204 added excitement on 15-hour journey between New York and OR Tambo International Airport in Johannesburg as customers interacted and took pictures with her.
“SAA is more than an airline, we – as Zozibini – are African first. We are a proud carrier of Africa’s hopes and dreams and its unlimited potential, which leaves us bursting with pride as we welcome our daughter back home and celebrate her global success,” said Zuks Ramasia, SAA’s ACEO.
“Our crew described the opportunity to fly a South African born Miss Universe as one of their proudest and memorable experience, one that will remain an indelible highlight in their careers,” said Ramasia.
SAA flew Zozibini back to South Africa as one of the “Homecoming” partners to showcase pride, patriotism and embrace African heritage.
In December, she flew SAA to Sao Paolo to participate in the Miss Universe contest as arranged by the Miss SA Pageant organisers.
The 25-year-old student hails from Tsolo in the Eastern Cape. She was crowned Miss Universe 2019 after previously being crowned Miss South Africa 2019. She is the third woman from South Africa to win the title, and the first black woman since Leila Lopes was crowned Miss Universe 2011.
SAA will fly the homegrown beauty queen back to New York where she lives during her reign as Miss Universe. On her return trip, she will again travel on the state-of-the-art aircraft, of which SAA has four in its fleet.
Like Zozibini, customers can enjoy the airline’s four A350s superior features such as a quieter cabin and relaxing in-flight experience including the all-new In-flight Entertainment (IFE), extra-legroom seats in Economy Class and lie-flat beds in Business Class.
The aircraft, which is environmentally friendly, with improved fuel-efficiency can fly further than any other aircraft in commercial service.
The introduction of the A350s will contribute to SAA’s operational efficiencies and cost reduction, and forms part of the ongoing fleet renewal programme. For example, through the A350s, we will lower our operational costs, and save on our fuel consumption by 25% and also lower our maintenance costs by 40% over a five-year period