Rolls-Royce Holdings plc Trent 1000 Package C Update (7993K)
April 13 2018 - 2:00AM
UK Regulatory
TIDMRR.
RNS Number : 7993K
Rolls-Royce Holdings plc
13 April 2018
13 April 2018
TRENT 1000 PACKAGE C UPDATE
At our 2017 Full Year results on 7 March 2018 we outlined our
management of certain Trent 1000 engine in-service issues and the
estimated costs relating to our implementation of the solutions to
address those issues.
As part of our ongoing inspection and testing of those engines
we have decided to carry out additional engine inspections to those
previously planned. The increased inspection frequency is driven by
our further understanding of the durability of the Trent 1000
Package C compressor, a condition that we highlighted earlier this
year. These inspections will be supported by service management and
flight operations guidance to airlines to be issued by the
airworthiness authorities.
This will unfortunately lead to additional disruption for our
customers. There are 380 Package C engines currently in-service
with airlines. This new regime does not impact Trent 1000 Package B
engines or Trent 1000-TEN engines.
While the compressor technical issue was known at the time of
our results, the requirement for more regular inspections will lead
to higher than previously guided cash costs being incurred during
2018. We are reprioritising various items of discretionary spend to
mitigate these incremental cash costs and our guidance for 2018 FCF
remains unchanged at Group FCF for 2018 of around GBP450m +/-
GBP100m.
Warren East, CEO, Rolls-Royce, said: "Our focus is on supporting
our customers and doing all we can to minimise any impact on their
operations. We sincerely regret the disruption this will cause to
our customers and our team of technical experts and service
engineers is working around the clock to ensure we return them to
full service as soon as possible. We will be working closely with
Boeing and affected airlines to minimise disruption wherever
possible."
Further information can be found at www.rolls-royce.com
About Rolls-Royce Holdings plc
1. Rolls-Royce pioneers cutting-edge technologies that deliver
the cleanest, safest and most competitive solutions to meet our
planet's vital power needs.
2. Rolls-Royce has customers in more than 150 countries,
comprising more than 400 airlines and leasing customers, 160 armed
forces, 4,000 marine customers including 70 navies, and more than
5,000 power and nuclear customers.
3. Annual underlying revenue was GBP15 billion in 2017, around
half of which came from the provision of aftermarket services. The
firm and announced order book stood at GBP78.5 billion at the end
of December 2017.
4. In 2017, Rolls-Royce invested GBP1.4 billion on research and
development. We also support a global network of 31 University
Technology Centres, which position Rolls-Royce engineers at the
forefront of scientific research.
5. Rolls-Royce employs almost 50,000 people in 50 countries.
More than 16,500 of these are engineers.
6. The Group has a strong commitment to apprentice and graduate
recruitment and to further developing employee skills. In 2016 we
recruited 274 graduates and 327 apprentices through our worldwide
training programmes.
For further information, please contact:
Investors:
Jennifer Ramsey +44 20 7227 9087
Ross Hawley +44 20 7227 9282
Media:
Richard Wray +44 20 7227 9163
www.Rolls-Royce.com
This information is provided by RNS
The company news service from the London Stock Exchange
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