With Westland now in Italian hands and BAE Systems pursu-ng its quest for a US partner, some observers see Rolls-Royce emerging in its centenary year as the new standard-bearer for the UK aerospace industry. The company is coming out of the crisis of the last two years in reasonable shape with profitability up, debt down and an enviable gross margin, before exceptional items, of 17.3%. At the same time, the group is reinforcing its position as a global business, with 40% of employees outside the UK and 82% of sales to customers outside the UK. The company's business model — addressing four global markets with a common technology focused on the gas turbine — is looking increasingly robust, as the group lays claim to the world number two position behind GE in the civil and defence aero-engine sectors. And having secured a berth on the latest offerings from both Airbus and Boeing, the A380 and the 7E7, business prospects in civil aeroengines (which account for almost half of total sales) look solid. The stock market seems to agree — the company's share price doubled over a 12-month period through mid-June 2004.
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