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ITP Aero registers €735 million revenue

03/11/2021

In a year marked by the effects of the Covid-19 pandemic, the company registers a loss after tax of -€13million euro

The company is focusing on accelerating recovery and digital transformation

Covid-19 has caused the worst crisis in the history of aviation and has significantly impacted ITP Aero as a key player of the global market. However, I would like to stress the swift action taken through our recovery Core 21 Plan, which has helped us overcome last year’s challenges and is supporting our path towards recovery. I would also like to take this opportunity to thank all our employees who have faced a very difficult year, as well as our customers, suppliers and partners for their continuous trust in the company”, Carlos Alzola, CEO.  

During 2020, ITP Aero has registered 735M€ million revenue, which is a 25% decrease in comparison to 2019.

At year end, ITP Aero registered a negative result with a loss after tax of -13M€, with an EBIT of 2M€ as a result of the business contraction and despite the actions put in place to overcome Covid-19 crisis. These results include exceptional costs such as the ones related to workforce adjustment and to impairment of civil programme related assets. Without these exceptional charges, underlying profit after tax was 25M€ (from 95M€ in 2019, a 73% reduction) and underlying EBIT closed at 40M€ (from underlying EBIT of 105M€ in 2019, a 61% reduction).

The decrease has specially affected the commercial business, which in 2020 represents 71% of the total business, reflecting lower engine volumes on commercial aviation programmes, particularly widebody and, also to a lower degree, narrowbody.

The Defence business, which includes MRO services, now accounts for 29% of the total business, remained resilient in terms of defence programmes with strong performance of the EJ200 engine that equips the Eurofighter; while maintenance services have decreased.  

CORE 21 Recovery Plan

In response to the impact of the pandemic on ITP Aero’s core markets, the company launched in July a recovery plan, CORE 21, aimed at initiating a necessary transformation process to increase competitiveness and accelerate, as much as possible, recovery. It is worth mentioning, that during 2020, ITP Aero has made important efforts towards laying the grounds for a profound digital transformation of the company that will continue in 2021.

Among other activities, CORE 21 also includes adjusting ITP Aero to the smaller market produced by the pandemic, and therefore, unfortunately, the Plan has entailed a workforce adjustment of around 15% at a global level, combined with temporary employment adjustments (furloughs) when possible. These measures have been put in place in all countries where ITP Aero is present, by seeking agreements with employee representatives. As of 31st December 2020, ITP Aero’s headcount was 3,559 employees, an 11% decrease. The workforce adjustment will be completed in 1H2021.

2020 milestones

Despite Covid-19, ITP Aero has continued investing in technology. R+D investment in 2020 accounted for €34,4M. Over the year, the company announced projects in relevant areas, such as enhancing additive layer or 3D manufacturing, and initial activities towards hybrid electric propulsion. 

With respect to Rolls-Royce future UltraFan™ engine, in 2020, ITP Aero completed the design and manufacture of the first intermediate pressure turbine (IPT) casing. Also the company announced it is leading project TASTE, which aims to develop key aerodynamic technologies to meet the deadlines of the programme and the environmental milestones set by the EU. 

In the Defence arena, in 2020, ITP Aero formalized its participation as the leader of the engine pillar in Spain for the Next Generation Weapon System/Future Combat Air System (NGWS/FCAS), a key future programme for the company in the next 20 years.

Increasing capabilities

One of the major milestones of the year took place in December. As part of its Civil Aerospace footprint review, Rolls-Royce announced a proposed increase of ITP Aero’s manufacturing, engineering, and supply chain capabilities. This involves the integration of the Hucknall plant (East Midlands, UK) and workforce into ITP Aero, as well as the transfer of the aero engines structures activities into ITP Aero. 

These actions will enhance ITP Aero’s position as a global Tier 1 aeronautic company, by increasing complimentary product portfolio – Hucknall products include complex fabrications, combustors and OGVs - and maximizing new business opportunities.

2021 Outlook by Carlos Alzola, CEO:

“After the most challenging year in ITP Aero’s history, for 2021, despite the high level of uncertainty and market recovery depending on Covid-19 development, we expect results to be in line with this year’s ones, with a slight decrease in sales volume and stabilization in underlying EBIT. However, demand recovery for the main programmes in which we participate will not reach 2019 volumes until 2024-25.”

About ITP Aero

ITP Aero is a world leading company within its market, 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. The company employs 3,600 people at its production centres in Spain, United Kingdom, Mexico, Malta and India.

ITP Aero includes among its activities 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.

Contact:
Louis Trollope
Communication Specialist
M: (+34) 610 267 334
louisjon.trollope@itpaero.com

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