Parker Hannifin bags 40-yr. $2.5 billion Rolls Royce contract
30 Jan 2009
Cleveland: Parker Hannifin Corp said it expects a new partnership with Rolls-Royce Group Plc to generate roughly $2.5 billion in revenues over 40 years. According to Parker, its aerospace group has been selected by Rolls-Royce to work on the Trent XWB engine that will power new Airbus A350 XWB aircraft.
Eaton Corp., another Cleveland-based manufacturer will design, develop and supply parts, including the main engine fuel pump for the same engine. The deal, announced last week, could produce more than $750 million in revenue during the 40-year programme.
Parker will design and supply parts, including valves, oil pumps and the hydraulic system that moves power between the engine pumps and the aircraft.
Aerospace was a bright spot for Parker in the last quarter, when its profits fell nearly 27 per cent. It has cut jobs and slashed earnings expectations on the back of dropping orders and uncertainty over the coming period.
However, for its aerospace segment sales and orders were up. The company has bagged $12.5 billion in contracts during the past two years.
Rolls-Royce has received orders for more than 1,000 Trent XWB engines. Parker expects to deliver its first components to Rolls-Royce late this year.
Ground testing of the engines will start in 2010, with the first flight on a new Airbus scheduled for 2012.
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