Rolls-Royce’s civil aerospace division has recorded a jump in its half-year underlying profit by posting £173 million ($229 million) before financing.
In results released on Tuesday (August 1), the British engine maker stated that its aftermarket services, led by in-production fleet and time and materials activities on mature engine types, contributed “strong growth” to a division which saw revenues grow 14% year-on-year to £3.6 billion.
Its flagship TotalCare aftermarket offering increased its net assets in the first half of 2017 by £119 million to £2.6 billion, reduced from £149 million for the same period last year. Rolls-Royce said this reflects accounting for new “linked” engines of £265 million and contract accounting adjustments taken in the year of £33 million, offset by net other items of £179 million.
The British engine maker’s civil division, accounting for 53% of overall group revenues, was also buoyed by a 27% increase in Trent engine deliveries, factoring in the likes of the Trent XWB for the Airbus A380 superjumbo and the Trent 1000 engine option for the Boeing 787.
Rolls-Royce has also moved to revamp its aftermarket network in recent years, starting with the divestment of three service stations in 2015 and the introduction of new aftermarket services such as SelectCare for mature engine operators and LessorCare tailored for the leasing market.
In June this year, it unveiled an aircraft availability center at its aerospace headquarters in Derby, where it will plan engine operations and maintenance management through utilizing a broader set of data analytics.
Described as “the next step” of Rolls-Royce’s engine monitoring service, the center boosts both the scope and scale of data used on existing engine health monitoring services provided by the OEM.
For the whole of 2017, chief executive Warren East told the media in a statement that its outlook remains unchanged, with Rolls planning the growth of its aftermarket offering led by increased engine flying hours.