Podcast
Questions and Answers
What was the main reason for Rolls-Royce issuing profit warnings in 2014 and 2015?
What was the main reason for Rolls-Royce issuing profit warnings in 2014 and 2015?
Which of these companies has a larger market share of civil aircraft engines than Rolls-Royce?
Which of these companies has a larger market share of civil aircraft engines than Rolls-Royce?
What was the impact of Rolls-Royce's decision to sell engines with long-term service contracts?
What was the impact of Rolls-Royce's decision to sell engines with long-term service contracts?
What is the main area of growth for Rolls-Royce?
What is the main area of growth for Rolls-Royce?
Signup and view all the answers
What is the approximate percentage of wide-body aircraft fleet that Rolls-Royce expects to power in the coming years?
What is the approximate percentage of wide-body aircraft fleet that Rolls-Royce expects to power in the coming years?
Signup and view all the answers
What is the primary purpose of the nuclear reactor Rolls-Royce is developing for the moon?
What is the primary purpose of the nuclear reactor Rolls-Royce is developing for the moon?
Signup and view all the answers
What is the name of the service contract that Rolls-Royce uses to sell engines?
What is the name of the service contract that Rolls-Royce uses to sell engines?
Signup and view all the answers
What is the name of the new civil engine that Rolls-Royce launched for the business aviation market?
What is the name of the new civil engine that Rolls-Royce launched for the business aviation market?
Signup and view all the answers
In what year was Rolls-Royce Holdings plc incorporated?
In what year was Rolls-Royce Holdings plc incorporated?
Signup and view all the answers
Which company is the largest maker of aircraft engines in the world?
Which company is the largest maker of aircraft engines in the world?
Signup and view all the answers
As of 2020, what was Rolls-Royce's market share in the commercial aircraft engine market?
As of 2020, what was Rolls-Royce's market share in the commercial aircraft engine market?
Signup and view all the answers
When did Rolls-Royce enter voluntary liquidation?
When did Rolls-Royce enter voluntary liquidation?
Signup and view all the answers
What was Rolls-Royce plc's market capitalization on 28 August 2019?
What was Rolls-Royce plc's market capitalization on 28 August 2019?
Signup and view all the answers
Who established the separate business with Royce in 1904?
Who established the separate business with Royce in 1904?
Signup and view all the answers
Which stock exchange is Rolls-Royce Holdings plc listed on?
Which stock exchange is Rolls-Royce Holdings plc listed on?
Signup and view all the answers
What does Rolls-Royce primarily design and manufacture for other industries besides aviation?
What does Rolls-Royce primarily design and manufacture for other industries besides aviation?
Signup and view all the answers
Study Notes
Company Overview
- Rolls-Royce Holdings plc, a British multinational aerospace and defence company, was incorporated in February 2011.
- The company designs, manufactures, and distributes power systems for aviation and other industries, continuing a legacy that began in 1904.
- Rolls-Royce is the second-largest maker of aircraft engines globally, following CFM International.
Market Position and Financials
- Ranked as the 16th largest defence contractor in 2018 based on defence revenues.
- Holds the position of the fourth largest commercial aircraft engine manufacturer, with a 12% market share in 2020.
- Market capitalisation of £4.656 billion as of 28 August 2019, making it the 85th largest company on the London Stock Exchange.
Historical Context
- Roots trace back to Henry Royce's engineering business established in 1884, leading to a car production partnership with Charles Rolls in 1904.
- Rolls-Royce Limited was incorporated in 1906, but entered voluntary liquidation in 1971 due to financial difficulties.
- Government acquisition led to the establishment of Rolls-Royce (1971) Limited, which currently operates as Rolls-Royce plc.
Corporate Evolution
- Returned to the stock market in 1987, under the government of Margaret Thatcher.
- Ownership transitioned from Rolls-Royce plc to Rolls-Royce Group plc in 2003, and then to Rolls-Royce Holdings plc on 23 May 2011.
- Throughout these changes, Rolls-Royce plc remained the principal trading entity.
Civil Engine Developments
- In the 1980s, the company expanded engine offerings across a wider range of civil aircraft, powering 17 airliners compared to competitors General Electric's 14 and Pratt & Whitney's 10.
- Civil engines became the primary growth area, with £11 billion invested in research and development from 2010 to 2018.
- Notable engine launches include the Trent XWB and Pearl 15, along with securing 2,700 orders for wide-body aircraft and business jets.
Latest Innovations and Initiatives
- Plans to produce over 600 wide-body engines annually, aiming to power over 50% of the world’s wide-body fleet.
- Entered a $3.52 million agreement with the UK Space Agency in 2023 for nuclear reactor development on the moon, targeting power for space missions.
Challenges and Responses
- Experienced multiple profit warnings in 2014 and 2015 attributed to US defence cuts and downturns in the offshore oil and gas market, leading to job cuts exceeding 3,000.
- Transitioned to selling aero-engines primarily with long-term service contracts, termed “TotalCare”, which delayed revenue recognition despite initial profit booking.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Learn about the history and business of Rolls-Royce, a British multinational aerospace and defence company. Discover its establishment, products, and major business sectors.
