Rolls-Royce Power Systems sees double-digit growth in first half
By Becky Schultz04 August 2023
Rolls-Royce’s Power Systems business unit, which includes mtu-branded high-speed engines and propulsions systems, saw a 24% increase in sales in the first half of 2023 to £1.8 billion (€2 billion*), with order cover for 2023 and 2024 reported at record levels. Operating profit was at £125 million (€143 million) with a 7.0% margin.
The company noted that Services revenues were up 10%, a reflection of increased end market activity. OE revenue grew by a solid 33%, which Rolls-Royce attributed to strong order execution for stationary power generation equipment and continued strong sales of mobile power solutions in the marine and mining segments.
Order intake for the Power Systems business was £1.9 billion (€2,2 billion), 14% lower than the prior period, the company noted. Key awards in the period included:
- delivery of further marine engines for yacht builder Ferretti,
- follow-up orders for rail power packs from Hitachi
- and a second contract to supply mtu generator packs for the US Navy frigate program.
Demand remained strong despite increased pricing, Rolls-Royce added.
Dr. Jörg Stratmann, CEO of Rolls-Royce Power Systems, attributed the significant sales growth in the often “not so strong first half of the year” to the success of the company’s efforts to leverage existing potential and improve the performance of its business.
The Power Systems business is anticipating a positive development for the full year 2023, with an improvement in the operating margin due to the impact of pricing actions, cost efficiencies and seasonally higher volumes.
*Figures in € are informative on the basis of fixed exchange rates.