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Saturday, March 2, 2019 

Rolls-Royce's Power Systems division has reported an excellent performance in 2018, with adjusted revenue up 15 % to a record 3.5 billion or 3.9 billion, and adjusted profit climbing to 317 million (358 million), equivalent to an adjusted return on sales of 9,1 %.

“Not only did we benefit from strong demand for our products due to the favourable state of the global economy, we are now also reaping the rewards of our hard work on the transformational change program which has made us significantly more profitable,” said CEO Andreas Schell. “Our streamlined, updated product and service portfolio is being very well received by customers.”

Of the three divisions that make up Britain's Rolls-Royce plc, Power Systems is the number two revenue earner. The Power Systems order book  was 28 % above previous year, with marine sales 12% ahead. Subsidiary Bergen Engines in Norway has turned the corner and is now a successful player in the stationary power generation market, having, for the first time, produced more engines for power generation applications than for ship propulsion.

The company is looking to lever its 2018 successes as it presses ahead with its PS 2030 strategy, transforming itself from an engine manufacturer, under the MTU and Bergen brands, to a supplier of integrated solutions.

“2018 is proof-positive that we are on the right track with the move to hybrids and electrical drive components, with gas engines and with digitalization, adding new technologies to our portfolio,” said Schell. “Service will continue to gain importance. Over a third of revenue currently comes from maintenance, spare parts and services – and that figure is rising.”

Rolls-Royce Power Systems is working on a new range of digital service products, using technology to capture, transmit and analyse key operating data. The Digital Solutions division is managing projects such as 'Service of the Future' and the 'Digital Twin'” program, in which a virtual image of a real engine is created and constantly updated with operating data in order, for example, to be able to predict maintenance needs more efficiently and more accurately.

“We are increasingly entering into partnerships – in different geographies and on different issues. Our intention is to grow with our partners,” said Schell. This includes joint ventures with partners in China and India to build engines and generator sets, with an eye to tapping into new markets.

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