Rolls-Royce Withdraws From Boeing NMA Race

An update on the Trent 1000 engine problems from Rolls-Royce’s calendar 2018 results presentation

An update on the Trent 1000 engine problems from Rolls-Royce’s calendar 2018 results presentation

The firm also had to book a £186 million hit from Airbus' recent decision to stop making its A380 plane. The group's shares have added more than 15 percent to their value over the past year, as compared with about a 2.5-percent dip in the Footsie.

The news came as Rolls-Royce reported a 7% rise in revenue previous year to £15.73bn (2017: £14.7bn), while operating profits doubled to £616mln (2017: £306mln) thanks to a "significant improvement" in the civil aerospace business.

He said: "Despite the challenges we faced on Trent 1000 in-service issues, solid progress has been made realising our ambition to make 2018 a breakthrough year, both strategically and financially".

Warren East, chief executive said, "Underlying financial results are ahead of expectations, with good growth in profit and cash flow".

Rolls gave the update alongside news that it had dived into a net loss past year as its Trent engines were hit by costly repairs and a decision by Boeing's European rival Airbus to stop making the A380 jumbo.

Antonio Brown takes no blame with Steelers fallout
And it's like, you know what I mean, they control the narrative. I'd go so far as to call this choice "ill advised". What the f*ck? I'm over here wide open.

Rolls is facing a total of £1.5bn of costs spread over five years for dealing with reliability problems with its Trent 1000 engines used on Boeing 787 aircraft.

Last year, a fault with the company's Trent 1000 engines grounded planes at a number of airlines.

Underlying operating profits were £616m, up £253m, while Rolls-Royce hailed a "significant improvement" in Civil Aerospace despite a £127m increase in negative contract accounting adjustments to £276m, which was offset by £188m higher net research and development capitalisation. It said parts in its Trent 1000 engines were wearing out faster than expected but that it "had a solution" to the problem.

Rolls-Royce no longer wishes to be a candidate to make the engine for a new midsize passenger jet proposed by United States planemaker Boeing, the troubled British group said Thursday.

In a rare move for the engineering giant, Rolls-Royce was forced to withdraw from competing to build engines for Boeing's approaching mid-market aeroplane model because it is "unable to commit to the proposed timetable".

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