Generating profit despite COVID-19

Adjusted revenue is down 11% to GB£1.25bn at Rolls-Royce Power Systems in Q1 2020. The division, which offers MTU products and solutions, remains in the black, having generated GB£22m (down 79%) of underlying profit.

At the same time, Power Systems has been continuing to reinvent itself as a provider of sustainable, integrated total solutions for drive-power and energy needs, and is increasingly developing net-zero-carbon products with a focus on electrification, digitalization and decarbonization.

“Despite the unprecedented scenario in which the global economy finds itself due to Covid-19, we have actively managed the economic impact on Power Systems in the first six months of 2020,” said Andreas Schell, CEO of Rolls-Royce Power Systems.

“We identified this problem at an early stage and took a number of countermeasures. The challenge of focusing effort on shielding our employees from infection while continuing to serve customers to the best of our abilities has been met despite the prevailing headwinds.”

Rolls-Royce Power Systems recently signed a collaboration agreement with Daimler and its partner Volvo to work on using commercial vehicle fuel cells in distributed power supply systems. Work is underway on a demo system due to go into operation in early 2021.

Power Systems’ end markets are expected to return to pre-COVID-19 levels by the end of 2021.

By Rebecca Jeffrey