Rolls Royce Holdings should soar with aviation growth

Article Excerpt

Rolls Royce Holdings is one of the stocks included in the EWU ETF, highlighted in this issue. But notably, this company no longer owns the legendary car franchise—Rolls Royce Motor Cars is now owned and operated by Germany’s BMW. Rolls Royce Holdings is listed on the London Stock Exchange with a market value of $16 billion U.S. That’s a little over 10% of the market value of a comparable business, Boeing (symbol BA on New York). Last year Rolls Royce had revenues of approximately $16 billion U.S. The largest division is civil aerospace which contributed 45% of the revenues, followed by the defense and power systems units. The civil aerospace unit is a major manufacturer of engines for large commercial aircraft, regional jets, and business aircraft. Key products include the Trent series of jet engines used in large airplanes such as the Airbus A330 and the Boeing 787. Aftermarket services is also a considerable contributor to revenue for this unit. The defense division is a..