Rolls-Royce narrows losses despite ongoing engine woes
Engine-maker Rolls-Royce has reported narrowed half-year losses, but revealed ongoing woes with its Trent 1000 turbine issues.
The group reported statutory interim pre-tax losses of £791m against £1.2bn a year ago. On an underlying basis, half-year profits rose 16% to £94m for the six months to June 30, while operating profits jumped 32% to £203m.
Rolls said problems with its Trent 1000 turbines were still causing some customer disruption, while it hiked the estimated in-service costs of dealing with the issue by £100m over the next three years.
The company has been beset by problems with its engines since the discovery in 2018 of technical issues with the Trent 1000s, which power the Boeing 787 Dreamliner jet. Rolls also revealed an extra £59m charge from Airbus's decision to stop production of its A380 superjumbo aircraft, taking its total hit from the move to £245m.
But it backed its 2019 guidance for underlying operating profit and free cash flow of £700m, plus or minus £100m.
Chief executive Warren East said: "We delivered further progress across the group in the first half in line with our full-year expectations. We have made good progress on resolving the Trent 1000 compressor issue, though, regretfully, customer disruption remains.
"Progress on our restructuring programme is in line with the plan we outlined a year ago."
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