Shares in the London-based company, which is still working with airlines to replace faulty Trent 900 engines that power the A380 jetliner, received a much-needed boost from the double stroke of good news.
TAM Airlines has ordered V2500 engines to power ten Airbus aircraft as it expands service after earlier this year announcing plans for a merger with LAN of Chile that would create Latin America’s largest airline.
The V2500 is produced by the International Aero Engines consortium in which Rolls-Royce is a senior shareholder.
IAE’s other partners are Pratt & Whitney, the Japanese Aero Engines Corporation and MTU Aero Engines.
The contract includes a long-term engine service agreement for the aircraft — seven A321s and three A319s, which are due to be delivered from 2011.
Rolls-Royce also revealed that its first order for its new wave-piercing ship from Farstad Shipping is worth more than 12 million pounds ($19 million) and includes an option for a second vessel of the same value.
The ship has a streamlined bow design that enables it to pierce through waves in extreme weather conditions, while maintaining constant speed, reducing fuel consumption and enhancing safety for crew.
In addition to the new design, Rolls-Royce will supply Azipull propellers, thrusters, Bergen diesel engines, and a Rolls-Royce DP2 dynamic positioning system, which uses satellite technology to accurately position the vessel.
Shares in the company closed 1.8 percent higher at 599.5 pence on the London Stock Exchange, making some inroads on a 10 percent, or $1.5 billion, wipeout in the stock since one of its Trent 900 engines blew apart midair on a Qantas flight on Nov. 4.
The new deals appear to justify Rolls-Royce’s faith that its business is diversified enough across the civil and commercial marine and aviation sectors and energy industry to withstand the Trent 900 crisis, although it has warned that full-year profits will be hit by the issue.
In Wednesday’s announcements, the company stressed that it has a broad customer base comprising more than 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 3,000 marine customers, including 70 navies, and energy customers in nearly 120 countries.
It also pointed out that almost half of its underlying revenues of 10.1 billion pounds in 2009 came from services revenues.
Still, the company has been criticized for not providing enough detail on how it is resolving the Trent 900 problem.
It is working with Qantas, Singapore Airlines and Germany’s Lufthansa to replace faulty engines on their aircraft, but has said little about how long that process will take and if it will affect the delivery of new A380s to both those carriers and new airline customers.
