Rolls-Royce Holdings plc Trading Update: On Track to Deliver (8244X)
May 02 2019 - 02:00AM
UK Regulatory
TIDMRR.
RNS Number : 8244X
Rolls-Royce Holdings plc
02 May 2019
2 May 2019
ROLLS-ROYCE HOLDINGS PLC
ON TRACK TO DELIVER
Trading update
We are today holding our Annual General Meeting. In his update
to shareholders, our Chief Executive Warren East will comment: "I
am pleased to report that trading is in-line with our expectations.
We continue to see a healthy market environment, with strong order
intake year-to-date at Power Systems, good flying hour growth in
Civil Aerospace and positive order momentum in Defence. The
in-service performance of the Trent XWB-84 remains strong and it
has been encouraging to see recent order wins for our Trent 1000
engine. Our restructuring programme has continued to make progress
as we aim to bring down commercial and administrative costs,
improve our engineering efficiency and drive lasting culture change
at Rolls-Royce. The completion of our disposal of the Commercial
Marine business also represents an important milestone, with
proceeds received in April. In summary, we remain on track for the
Full Year and to deliver our longer-term aspirations."
For the 2019 Full Year, we remain confident in our underlying
operating profit and free cash flow guidance of GBP700m +/-
GBP100m. In terms of seasonality, cash flow phasing is expected to
have a strong second half bias with higher invoiced engine
deliveries and planned inventory reductions in Civil Aerospace.
We continue to implement the fixes to improve the health of the
Trent 1000 fleet. Retrofits of the new design of the Intermediate
Pressure Compressor (IPC) blade for the Package C variant are
underway. Additionally, inspections of Trent 1000 TEN High Pressure
Turbine Blades (HPTBs) are progressing and work continues on
testing a redesigned HPTB for the Trent 1000 TEN ready for
introduction into the fleet in early 2020. Based on our current
understanding of the situation and fleet management plan, our
guidance for in-service cash costs on the Trent 1000 in 2019 and
2020, as published with our 2018 Full Year Results on 28 February,
remains unchanged.
About Rolls-Royce Holdings plc
1. Rolls-Royce pioneers cutting-edge technologies that deliver
clean, safe and competitive solutions to meet our planet's vital
power needs.
2. Rolls-Royce has customers in more than 150 countries,
comprising more than 400 airlines and leasing customers, 160 armed
forces, 70 navies, and more than 5,000 power and nuclear
customers.
3. Annual underlying revenue was GBP15 billion in 2018, around
half of which came from the provision of aftermarket services.
4. In 2018, Rolls-Royce invested GBP1.4 billion on research and
development. We also support a global network of 29 University
Technology Centres, which position Rolls-Royce engineers at the
forefront of scientific research.
5. The Group has a strong commitment to apprentice and graduate
recruitment and to further developing employee skills.
For further information, please contact:
Investors:
Jennifer Ramsey
Head of Investor Relations
Tel +44 (0) 7825 903206
jennifer.ramsey@rolls-royce.com
Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel +44 (0) 20 7227 9163
richard.wray@rolls-royce.com
www.Rolls-Royce.com
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END
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