Rolls-Royce secures two aerospace contracts worth over £1bn
After a rocky few months in which its share price has plummeted, Rolls-Royce delivered some positive news to investors with the announcement of two new corporate contracts together worth over £1bn.
Read more: Rolls-Royce share prices down 8pc following profit warning
Rolls-Royce's share price rose just under one per cent in early trading after it announced it had been selected to provide Trent 700 engines to the International AirFinance Corporation – adding $930m (£595.8m) to its order book – which will then be sold on to Saudi Arabian Airlines to which it will provide engine service support worth $1.3bn.
The engines will be used on Airbus A330 aircraft.
The FTSE 100-listed company said its engine is "the clear market leader" for the aircraft accounting for 60 per cent of new orders over the last three years and 90 per cent of A330 freighters in service or on order.
However, in a recent profit warning the company warned its civil aerospace would face "net headwinds" of around £300m due to a shift from the Trent 700 to the new Trent 7000 engines.
It has faced industrial action from workers due to plans to cut around 2,600 jobs from its aerospace division announced last year.
Eric Schulz, the company's president for civil large engines said in a statement:
We welcome our customer's confidence in the Trent 700 as the best solution for fuel burn, emissions and noise performances as well as delivering unrivalled reliability for Middle East operations.