Engines
Transition to New Airliners Hits Rolls In the Short Term
In the long-run, Rolls-Royce expects engine deliveries for new airliners to grow its market share and civil aerospace earnings.
Demand for Rolls-Royce's Trent 700 turbofan is down based on fewer orders for the Airbus A330ceo. (Photo: Rolls-Royce)
Demand for Rolls-Royce's Trent 700 turbofan is down based on fewer orders for the Airbus A330ceo. (Photo: Rolls-Royce)

Rolls-Royce expects to see weaker returns from its civil aerospace business through the end of next year as it transitions production from established, more profitable engine programs to turbofans for newer airliners. Announcing a 57 percent drop in pre-tax group profits for the first half of 2015, the UK-based engine maker highlighted declining demand for the Trent 700 turbofan for the existing A330ceo airliner. It also pointed out that pricing for engines on new airliners, such as the A330neo, tends to be lower in order to attract launch customers. At the same time, the costs associated with new engines are higher as at the earlier stages of the new airliner programs.