Rolls-Royce poised for further growth, King steps down

Aircraft engine maker Rolls-Royce said it continues to expect modest growth in underlying revenue and good growth in underlying profit for the full year as it announces the surprise departure of Mark King, head of its Aerospace business.

Tony Wood has been named the new President of its key Aerospace division and will take up his new role on May 13th. King will resign from the company at the end of June, the group explained.

Otherwise the FTSE-100 firm said current trading is in line with expectations after a strong quarter from its civil aerospace unit. Guidance for all business units remain unchanged and cash flow is around breakeven.

Since the preliminary 2012 results in February, Rolls-Royce has won a $1.6bn order from International Airlines Group (IAG) for Trent XWB engines, with long-term TotalCare service support, to power 18 Airbus A350-1000 aircraft.

Rolls Royce explained: "We have signed multiple contracts to provide and service military transport engines for the US Air Force and US Marine Corps; and we have started construction of the state-of-the-art Core Manufacturing Facility in Derby that will produce reactor cores for the UK's current and future Submarines Programme."

Lawrie Haynes, currently President for the group's Nuclear division, has been appointed as President of Marine & Nuclear.

CJ