2nd May 2019 08:58
LONDON (Alliance News) - Rolls-Royce Holdings PLC continues to see a healthy market environment with growth across all three divisions, and it remains on track for the full-year, Chief Executive Warren East said in his annual general meeting statement on Thursday.
East said the jet engine and propulsion systems maker is seeing strong order intake year-to-date at Power Systems, good flying hour growth in Civil Aerospace, and positive order momentum in Defence. He added that restructuring programme has continued to make progress to bring down commercial and administrative costs and improve engineering efficiency.
For 2019, Rolls-Royce remains confident in its underlying operating profit and free cash flow guidance of GBP700 million, plus or minus GBP100 million. In 2018, the company recorded underlying operating profit of GBP616 million and free cash flow of GBP641 million.
The FTSE 100 listed company also retained its February guidance for in-service cash costs on the Trent 1000 engines in 2019 and 2020.
"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 blade for the Package C variant are underway. Additionally, inspections of Trent 1000 TEN High Pressure Turbine Blades are progressing and work continues on testing a redesigned HPTB for the Trent 1000 TEN ready for introduction into the fleet in early 2020," East said.
Shares in Rolls-Royce were up 0.8% at 923.40 pence each.
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