The Financial Times has reported that Rolls-Royce is considering selling its commercial marine business. Many Rolls-Royce engines and transmissions are used in the superyacht sector.
The paper reported an inside source who said the sale is likely, though the company will keep its naval marine businesses. Last year, Rolls-Royce’s marine division had losses of £27m on sales of £1.1bn. The commercial marine division accounted for around 75% of those sales.
CEO Warren East told the paper that he was looking at “strategic options” for the marine business as part of a larger restructuring for the company. He is considering trimming the company’s five business units into three.
East told the paper that the future of its civil marine unit and the streamlining of the company into civil aerospace, defence and power systems would “assist us in improving performance from our core businesses”. The company will give details when it announces its annual results on March 7.
The Financial Times said that selling the commercial marine business would “please” investors who have pushed for the group to shed the division after years of cost-cutting among large clients in the oil and gas exploration industries. The company has cut nearly 2,000 jobs in its marine business in the last three years, while reducing the number of factories from 27 to 15.
Mikael Makinen, that marine division’s CEO, told The Financial Times last month more factory closures might happen if the market continues to be depressed. The company said it is considering a sale of L’Orange, a German-based subsidiary, that makes fuel injection systems for marine and industrial diesel engines.
For the full story, click here.