RR. Rolls-royce Holdings Plc

   By Adria Calatayud 
 

Rolls-Royce Holdings PLC (RR.LN) said Friday that it will book higher cash costs than initially planned in 2018, as it carries out additional inspections on some versions of Trent 1000 engines.

Still, the British aircraft engine maker reaffirmed its free-cash-flow guidance for the year around 450 million pounds ($639.2 million), as it said it would reprioritize various expenditure items to mitigate incremental costs.

The company said the new inspections would lead to additional disruption to its customers. There are 380 Package C engines--the ones being reviewed--currently in service with airlines, Rolls-Royce said, adding that the issues won't affect its Trent 1000 Package B engines or Trent 1000-TEN engines.

"We will be working closely with Boeing Co. (BA) and affected airlines to minimise disruption wherever possible," Rolls-Royce Chief Executive Warren East said.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

April 13, 2018 02:41 ET (06:41 GMT)

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