25 November 2014
US MARINE CORPS AWARDS ROLLS-ROYCE V-22 ENGINE SERVICES CONTRACT
Rolls-Royce has been awarded a new, two-year contract to provide aftermarket engine support for the US Marine Corps and Air Force V-22 fleets, which provides a more than 30 percent reduction in support costs.
The contract, through the company's innovative MissionCare™ model, is valued at up to $287 million and will cover all V-22 aircraft across the Marine and Air Force fleets. Rolls-Royce is the sole engine provider for V-22 aircraft and has delivered 750 AE 1107C engines to the program.
The reduced maintenance costs result from a significant improvement in engine time on wing since 2009 when the original MissionCare contract was signed. Rolls-Royce has invested $90 million in capability and reliability improvements for the AE 1107C engine. Rolls-Royce has designed a series of upgrades that boost "hot and high" performance and add 17 percent more power to the engine over the original specification.
MissionCare, a Rolls-Royce developed package of services, incentivizes the company to design, develop and implement technology and affordability improvements to benefit the customer.
Tom Hartmann, Rolls-Royce, Senior Vice President Customer Business, said, "This new contract demonstrates confidence from V-22 operators that Rolls-Royce will continue to provide outstanding service and capability to the V-22 fleets. Operators know they can count on Rolls-Royce to provide the power and support they need to succeed in their missions - while also focusing on increased affordability."
The Rolls-Royce AE 1107C engine is robust and battle-proven, demonstrating reliability during deployments across the Mideast, Africa and the Pacific. V-22 operators have never cancelled a mission due to engine availability.
The AE 1107C engine shares a common core with the Rolls-Royce AE family of engines, which totals more than 62 million flight hours of service and includes nearly 6,000 total engines in military and commercial service.
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Land & Sea. These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines.
2. Aerospace comprises Civil Aerospace and Defence Aerospace. Land & Sea comprises Marine, Nuclear & Energy and Power Systems. On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
3. Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
4. Our business is focused on the 4Cs:
· Customer - placing the customer at the heart of our business
· Concentration - deciding where to grow and where not to
· Cost - continually looking to increase efficiency
· Cash - improving financial performance.
5. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £70.4 billion at 30 June 2014.
6. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.
7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
8. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes. Globally we have over 1,000 Rolls-Royce STEM ambassadors who are actively involved in education programmes and activities; we have set ourselves a target to reach 6 million people through our STEM outreach activities by 2020.
For further information, please contact:
Investors: Media:
Jilinda Crowley Richard Wray
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Rolls-Royce plc Rolls-Royce plc
Tel: +44 (0)207 227 9282 Tel: +44 (0)7974 918416
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