Questions and Answers
In which year was Rolls-Royce Holdings plc incorporated?
What is Rolls-Royce's market share in the commercial aircraft engine market as of 2020?
What was the name of the company created by the government in 1971 to buy Rolls-Royce's business and assets?
Where is Rolls-Royce Holdings plc's registered office located?
Signup and view all the answers
What was the market capitalisation of Rolls-Royce Holdings plc at the close of London trading on 28 August 2019?
Signup and view all the answers
In what year did Rolls-Royce Group plc pass ownership to Rolls-Royce Holdings plc?
Signup and view all the answers
What was the main area of growth for Rolls-Royce between 2010 and 2018?
Signup and view all the answers
What was the value of the funding agreement with the UK Space Agency in 2023?
Signup and view all the answers
What was the reason for Rolls-Royce's profit warnings in 2014 and 2015?
Signup and view all the answers
What type of contracts did Rolls-Royce sell many of its aero-engines with?
Signup and view all the answers
Study Notes
Company Overview
- Rolls-Royce Holdings plc is a British multinational aerospace and defence company, incorporated in February 2011.
- The company is the world's second-largest maker of aircraft engines, behind CFM International.
- Major sectors include aviation, marine propulsion, and energy.
Historical Context
- Rolls-Royce was founded in 1904, evolving from the engineering business of Henry Royce established in 1884.
- The partnership with Charles Rolls led to the creation of Rolls-Royce Limited in 1906.
- The original Rolls-Royce Limited went into voluntary liquidation in 1971; its assets were acquired by the government to form Rolls-Royce (1971) Limited.
Market Position and Financials
- Ranked 16th largest defence contractor in 2018, based on defence revenues.
- As of 2020, it held a 12% market share in commercial aircraft engines, making it the fourth largest in this category.
- By August 28, 2019, Rolls-Royce had a market capitalisation of £4.656 billion, ranking 85th among companies listed on the London Stock Exchange.
Business Development and Growth
- The civil engines business is the main growth area, having expanded its engine fitment across 17 airliner types.
- Between 2010 and 2018, the company invested £11 billion in research and development, resulting in the launch of six new civil engines, including Trent XWB and Pearl 15.
- Anticipates producing over 600 wide-body engines annually, aiming to power over half of the world's wide-body fleet.
Recent Initiatives
- In 2023, Rolls-Royce secured $3.52 million from the UK Space Agency to develop a nuclear reactor for moon missions, aimed at supporting space exploration.
Challenges and Strategic Moves
- In response to market pressures, including US defence cuts and oil downturns, the company issued multiple profit warnings between 2014 and 2015 and cut over 3,000 jobs.
- Rolls-Royce had traditionally sold engines with long-term service contracts ("TotalCare"), but faced challenges in recognizing revenues from these contracts due to unprofitability issues.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Learn about Rolls-Royce Holdings plc, a British multinational aerospace and defence company incorporated in 2011. The company designs, manufactures, and distributes power systems for aviation and other industries.