Rolls-Royce to Book Higher Costs on Additional Engine Inspections
April 13 2018 - 2:56AM
Dow Jones News
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)
Copyright (c) 2018 Dow Jones & Company, Inc.
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