UK-based global major propulsion and power systems group Rolls-Royce, which is particularly renowned for its aeroengines, will no longer buy titanium from Russia, group CEO Warren East told the London Daily Telegraph newspaper on Thursday. Titanium is used in the manufacture of rotor blades for jet engines. Anticipating the outbreak of war in Ukraine, the group had been diversifying sources and stockpiling the metal.

“We’ve been ramping up those sources over the last several months just as we’ve been stockpiling from our Russian supplier,” he said. “We can get titanium from other places, our assumption is that we won’t be taking titanium from Russia for some time.”

Also on Thursday, Rolls-Royce released its full-year results for last year. The group reported an underlying profit of £414-million. In 2020 it had recorded an underlying loss of £2-billion, of which £1.3-billion had been one-off charges (mostly connected with the impact of the Covid-19 pandemic on its civil aerospace business). Underlying revenue from continuing operations last year was £10.9-billion. The company continued to suffer from a free cash outflow last year, of £1.5-billion, and a trading cash outflow of £1.2-billion, but both figures were substantial improvements on the equivalent figures for 2020.

The group’s restructuring programme, mainly focused on civil aerospace, had brought large cost savings. Indeed, savings of more than £1.3-billion were achieved a year ahead of plan, while disposals were on course and anticipated to bring in some £2-billion. Rolls-Royce spent £1.2-billion (gross) on research and development last year, aimed at both established and new markets. The group also made focused investments into net zero carbon emissions “opportunities”.

“We have improved our financial and operational performance, continued to deliver on our commitments and created a better-balanced business capable of sustainable growth,” he affirmed in his results statement. “We have achieved the benefits of our restructuring programme a year ahead of schedule, positioning civil aerospace to capitalise on increasing international travel.”

In addition to civil aerospace, Rolls-Royce is also active in the defence and power systems markets. Further, recently it has created new businesses to develop small modular nuclear reactors and electrical power systems.

“In defence, we have seen growth driven by strong demand in all our markets and in power systems we achieved [a] record order intake in the last quarter,” reported East. “The positive momentum we are generating gives us confidence both in our expectations for 2022 and our future growth. We have also made significant progress with our new businesses in electrical power and small modular reactors, both of which have the potential to create very significant long-term value. We are continuing to make disciplined investments to develop new and existing technologies, which will enable us to seize the significant commercial opportunity presented by the global energy transition driving sustainable returns.”

East also announced on Thursday that he would stand down as CEO at the end of this year. He has held the post since 2015.