Revenue and profit increased at Rolls-Royce Power Systems business unit

Rolls-Royce Power Systems business recorded a 6% increase in its adjusted revenue reaching EUR 1.78 billion, while adjusted operating profit grew by 20% to EUR 109 million, in the first half of 2019.
Economically and strategically important projects and orders were the key factors determining the first half of 2019, which was also characterised by the further implementation of the 2030 strategy.
Company’s revenue from services increased by 7% more than the traditional engine related business, due to the 25% increase in the number of long-term maintenance contracts concluded and the increase in sales of replacement parts. “This shows that our customers no longer simply buy an engine or a drive system but tend increasingly to purchase a total package that includes maintenance, which offers them reliability and fail-safe stability with calculable costs,” said CEO Andreas Schell.
To improve its services, Power Systems has gone digital. There are now over 3,000 data loggers installed on MTU engines to collect data for digital analysis in order to prevent damage for example by providing early maintenance.
On traditional business, the investments in company’s electrification and hybrid strategy and in new engines have subsequently led to a rise in R&D expenditure amounting to EUR 9 million, which corresponds to a 10% increase.
The Rolls-Royce business unit has already celebrated some initial success with new products
designed specifically for integrated solutions. The company received orders for 13 MTU Hybrid PowerPacks for railcars from the United Kingdom and the Republic of Ireland and from the Baden-Württemberg Ministry of Transport, the company is currently working on a feasibility study on the use of the MTU Hybrid PowerPack drive system for regional trains in south-west Germany.


Starting this autumn, the business unit will appear with a modified brand profile as Rolls-Royce Power Systems business unit, with its core brand MTU, will be integral part of the British Rolls-Royce engineering group. The new brand structure will support the PS 2030 strategy of the Power Systems business unit and the global growth path. Rolls-Royce will be the corporate brand and the employer brand. Consequently, the companies within the business unit that include MTU in their names will be given a new designation. MTU, as the brand name customers are familiar with, will continue to be used to identify the company’s products and solutions.
MTU Friedrichshafen GmbH will become Rolls-Royce Solutions GmbH in autumn 2019. This will be followed by MTU America Inc., which in future will operate as Rolls-Royce Solutions America Inc. Today’s MTU Onsite Energy GmbH in Augsburg will become Rolls-Royce Solutions Augsburg GmbH and MTU Onsite Energy Systems GmbH in Ruhstorf will be renamed Rolls-Royce Solutions Ruhstorf GmbH. The remaining subsidiaries will successively be given new designations based on these examples. The products of Bergen Engines will also be part of the new brand architecture.
“In the five years since we became a 100% subsidiary of Rolls-Royce, we have established a
strong position for ourselves within the group. We are not only the second largest business unit, but also with our transformation, with our agile corporate culture and with the speed with which we have brought about the changes, we are regarded as an example for others to follow,” Andreas Schell said.

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