Rolls-Royce Sees Trading in Line With Expectations

By Dimitrios Kontos

Rolls-Royce Holdings PLC (RR.LN) said Thursday that the year has started well and that trading is in line with its expectations.

The British engine maker said that while the requirement for more regular engine inspections will lead to higher than previously guided cash costs, it has reprioritized discretionary spend to mitigate these costs and so it is maintaining its profit and cash expectations for 2018.

The company said it expects group profit to be heavily second-half weighted.

Roughly two-thirds of the initial inspections of the Trent 1000 engines have been completed and the remainder are scheduled to take place within the next six weeks, the company said.

The company said it continue to work closely with Boeing Co. (BA), its customers and the regulatory authorities to minimize disruptions.

Rolls-Royce had said in April that it would book higher costs on extra inspections of Trent 1000 engines powering Boeing 787 Dreamliners.

The company will announce its half-year results on August 2.

Write to Dimitrios Kontos at dimitrios.kontos@dowjones.com

(END) Dow Jones Newswires

May 03, 2018 02:37 ET (06:37 GMT)

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