Rolls-Royce Wins Job to Make Engines for Russian Aircraft
May 12, 2011
RESTON, Va. -- Rolls-Royce PLC said it has received an order valued at up to $450 million to manufacturer and deliver its RB211-535 jet engines for a fleet of Russian-made Tupolev Tu-204 aircraft bought by Egypt's Kato Group. Rolls-Royce's contract covers engines for 13 aircraft and options for 17 more. Each aircraft carries two engines. The Tu-204, which is built by the Russian company Aviastar, has been operating as a prototype and is scheduled to complete certification by Russia's civil aviation authority in January 2012. A spokesman for Rolls-Royce, which has its U.S. headquarters in Virginia, said that all the engines for the 13 firm orders are slated to be delivered to Aviastar's plant in 2012. About 35% of the engine's components are supplied by U.S. companies. Separately, Rolls-Royce reported a 169 million ($263.6 million) pretax loss in the first half, caused by a 248 million charge for withdrawal from the steam power-generation business. The aerospace and engineering company said prospects in core businesses are encouraging and it expects a steady second half. It held its dividend steady at two pence a share. Profit from continuing operations rose 10% to 96 million. The company stressed the underlying strength of its continuing businesses, especially aerospace, where it has cut costs, improved efficiency and begun collaborations and joint ventures.
