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ITP Aero 2017 Full Year Results

ITP Aero recorded an 850 million euro turnover, a year on year growth of 9% in line with the ITP 2020 Strategic Plan.

Company workforce up by 8%

In accordance with the growth experienced over the last years, during 2017 ITP Aero made good progress towards the objectives set in its Strategic Plan ITP 2020. Throughout the year, the company achieved a number of important operational and technological milestones that contributed to a record turnover of 850 million euro, a 9% increase.

By business areas, ITP Aero's Commercial Aviation turnover saw a 22.9% increase, while the Defence segment registered a slight decrease of 6%. In Service Support recorded a 14.8% decrease.

Operating income reached 70.7M€, an increase of 5.9% over the previous year, with 8.3% profitability over sales. These results follow an increase of the commercial aviation business production stage in line with the worldwide industry trend. In addition, good progress was made in optimizing production costs per unit and containing fixed costs.

Profit after tax reached 72.9M€, a 4.6% increase compared to the previous year.

In 2017, ITP Aero R&D investment, including efforts associated with new programmes, amounted 121 million euros (67M euros in 2016), strengthening ITP Aero's position as one of the leading Spanish companies in R&D and technology investment in relation to sales. In addition, the company continued executing its industrial capacity investment plan during the year. As a noticeable example of this, the new casting plant in Sestao, Biscay, is now operating at full capacity.

Regarding its overall workforce, ITP Aero has increased its headcount, amounting 3.624 employees as of December 31st 2017 (3.346 in 2016). This means 278 employees more and follows the production ramp-up, especially in relation to the Rolls-Royce Trent engine family and Pratt & Whitney in all the PurePower® PW1000G. Most of the new workforce has joined the Zamudio and Sestao plants, both in Biscay.

Key milestones by area of activity

Commercial Aviation sales in 2017 rose to 551 million euros compared to 449 million euros in 2016. Commercial aviation sales represent 65% of ITP Aero's total activity by turnover.

In the commercial aviation segment, ITP Aero has a balanced portfolio, with major collaborations with most leading OEMs. The company is a Risk and Revenue Sharing Partner (RRSP) in all the Trent engine family. In the single-aisle and regional aircraft segment, ITP Aero has consolidated its business through its participation as a RRSP of Pratt & Whitney in all the PurePower® PW1000G applications. Regarding business aviation, 2017 saw the launching of the sixth application of Honeywell's HTF7000 engine, of which ITP Aero is a Risk and Revenue Sharing Partner.

In Defence, sales stood at 173 million euros, a 6% decrease, representing 20% of ITP Aero's global turnover. In this segment, ITP Aero is the leading company in the Latin American export campaigns for Eurojet (EJ200 engine) and Europrop International (TP400 engine) consortia.

Regarding the In Service Support business unit, ITP Aero has repaired more than 400 engines from over 100 operators in 40 countries in 2017, despite consolidating sales of 125 million euros, a 14.8% decrease compared to 2016.

Commenting on the results, Carlos Alzola, General Manager, said:

"We are especially proud of our results in 2017, as we are achieving the ambitious objectives set by our ITP 2020 Strategic Plan. This continuous growth is driven by different key programmes, especially those in commercial aviation and is supported by the increase of our workforce. In a year in which we have registered a change in our shareholder structure, now being a Corporate Entity within the Rolls-Royce Group, we have kept up to date with our business objectives with all our key customers and launched our new brand, ITP Aero".

2018 Outlook

Commenting on 2018 Outlook, Carlos Alzola said: "We expect the ITP Aero business to continue growing in the years to come. For 2018, we forecast double digit revenue growth driven by a strong increase in delivery volumes regarding civil programmes and at the same time a slight margin contraction as a result of the business mix change, which we anticipated in our Strategic Plan". 

Notes to the editor

ITP Aero is currently the ninth largest aircraft engine and components company in the world by revenue. Ranking among the top one hundred companies in the aerospace industry (Top 100 Aerospace Companies, PwC and Flight International). The company employs over 3,800 people at its production centres in Spain, United Kingdom, Mexico, the United States, Malta and India.

Among its activities, ITP Aero includes the design, research and development, manufacturing and casting, assembly and testing of aeronautical modules and engines. It also provides MRO services for a wide range of engines for regional airlines, business aviation, helicopters, industrial and defense applications. ITP Aero operates as a corporate entity within the Rolls-Royce group.

Louis Trollope
Communication Specialist
M: (+34) 610 267 334

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