Rolls-Royce Trent 1000 engine repairs to be made ‘within budget,’ despite recent return of issues
Rolls-Royce shares rose today after it said it would be able to fix a long-running engine problem which has left passenger jets grounded for months at a time within its original budget.
Read more: Rolls-Royce brings forward engine health checks as issues return
The issue, in which parts of itsTrent 1000 engine model deteriorate faster than expected, has been a headache for the blue-chip engineering firm in recent months after it re-emerged in two Singapore Airlines jets last month.
Rolls has taken a £790m hit to tackle the problem, which has affected customers across the globe and complicated a major restructuring which has already seen chief exec Warren East announce 4,600 job cuts last year.
But it added this morning it had seen recent order wins for the engine, which were “encouraging”.
The firm held its annual general meeting today in Bristol. Chief Executive Warren East told shareholders: “I am pleased to report that trading is in-line with our expectations. We continue to see a healthy market environment, with strong order intake year-to-date at Power Systems, good flying hour growth in Civil Aerospace and positive order momentum in Defence.
“The in-service performance of the Trent XWB-84 remains strong and it has been encouraging to see recent order wins for our Trent 1000 engine. Our restructuring programme has continued to make progress as we aim to bring down commercial and administrative costs, improve our engineering efficiency and drive lasting culture change at Rolls-Royce.
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“The completion of our disposal of the Commercial Marine business also represents an important milestone, with proceeds received in April. In summary, we remain on track for the full year and to deliver our longer-term aspirations.”
Shares were up 0.9 per cent this afternoon.