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Rolls Rolls-Royce Holdings plc: Company Strategy & Performance Analysis

Rolls Rolls-Royce Holdings plc: Company Strategy & Performance Analysis

Summary

Rolls-Royce is a global provider of integrated power systems and services to the civil aerospace, defense aerospace, marine, power and nuclear energy markets. The company has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.

The company offers a strong portfolio of MRO services. It offers several care services including TotalCare Life, TotalCare Flex, TotalCare Term, LessorCare, SelectCare, and foundation services. TotalCare offers predictive maintenance (off-wing) planning, management and off-wing repair and overhaul activities, and work scope creation. TotalCare covers both time-on-wing and shop visit cost risks. The company’s TotalCare service offers engine maintenance plans, including TotalCare-LIFE, TotalCare-TERM, and TotalCare-FLEX. Its SelectCare combines long-term shop visit cost with the option to choose from a range of optional services.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading MRO companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including order, order backlog, operating expense, operating income, net income, and MRO revenue.

Key Highlights

Civil aerospace segment drives order booked value

The company reported an increase in orders booked value at a CAGR of 3.2% from US$95.0 billion in 2012 to US$107.7 billion in 2016, mainly due to growth in the civil aerospace segment. The civil aerospace segment order book declined from US$102.4 billion in 2015 to US$96.3 billion in 2016; however in actual currency it posted an increase of 6.6% during the same period. In 2016, the company received significant orders from the civil aerospace segment that included a US$2.7 billion order from Norwegian for Trent 1000 engines, a US$1.2 billion order from Garuda Indonesia for Trent 7000 engines and a US$900 million order from Virgin Atlantic for Trent XWB.

Rolls-Royce ranks fourth in terms of MRO revenue

Rolls-Royce offers a strong portfolio of MRO services. It offers several care services including TotalCare Life, TotalCare Flex, TotalCare Term, LessorCare, SelectCare, and foundation services. The strong MRO service portfolio of the company has enabled it to generate substantial revenue. In 2016, the company’s MRO service revenue decreased from US$5,614.6 million in 2015 to US$5,004.4 million in 2016, indicating a decline of -10.9%. However, in actual currency, this value increased by 1.0% during the same period.

Investments in R&D to meet customer demand

Rolls-Royce focuses on investments into R&D to meet the growing demands from consumers. In 2016, the company spent over US$1,238.3 million on R&D, accounting for 6.1% of its total revenue. In 2016, it Rolls-Royce also filed for 672 patents. More than two-thirds of the company’s R&D expenditure is dedicated to improving the performance of its products with regards to environmental standards. Rolls-Royce also partners with 31 UTCs (University Technology Centers) and seven AMRCs (Advanced Manufacturing Research Centers) that are focused on the development of new manufacturing processes and technologies.

Scope

  • Company Snapshot - Details key indicators and rankings of Rolls-Royce Holdings Plc in terms of revenue, net income, and operating income.
  • Company SWOT Analysis - Outlines Rolls-Royce Holdings Plc ’s strengths, weaknesses, and opportunities and threats facing the company.
  • Growth Strategies - Provides an overview of Rolls-Royce Holdings Plc ’s corporate goals and strategic initiatives and evaluates their outcomes.
  • Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
  • Key Developments - Showcases Rolls-Royce Holdings Plc ’s recent corporate events and initiatives.
  • ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.
Reasons to buy
  • How does Rolls-Royce Holdings plc rank among its peers in terms of revenue and market share?
  • What are Rolls-Royce Holdings plc’s main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014?
  • How has Rolls-Royce Holdings plc performed in comparison to its main competitors?
  • What are Rolls-Royce Holdings plc’s strengths and weaknesses and what opportunities and threats does it face?


Company Snapshot
Company SWOT Analysis
Growth Strategies
CompanyPerformance
Competitive Landscape
DealsDeals Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix

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