Rolls-Royce sees further delay in Trent 1000 engine overhaul
FILE PHOTO: A view of one of two Rolls Royce Trent 1000 engines of the Boeing 787 Dreamliner during a media tour of the aircraft ahead of the Singapore Airshow in Singapore February 12, 2012. REUTERS/Edgar Su/File Photo
The company faces 1.6 billion pounds in extra costs and disruption as a result of the engine problem, which is due to the poor durability of components, and the latest delay spells further frustration for its customers and investors. “We perceived a risk that further action would be required, potentially leading to higher costs being incurred ... today’s announcement that guidance for the Trent 1000 cash costs in 2019 and 2020 remains unchanged comes as a relief,” Jefferies analysts, who rate the stock as “buy”, said.
“We deeply regret the additional disruption that this will cause our customers and we continue to work closely with them to minimize the impact on their operations,” Rolls-Royce said.
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