Rolls-Royce Holdings (LON:RR) has landed an engine order from Turkish Airlines, the blue-chip group has said. The news comes after the company updated investors on its full-year performance last week, revealing that it had returned to profit.
Rolls-Royce share price has fallen deep into the red in London in today’s session, having given up 1.34 percent to 913.40p as of 14:19 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.24 percent lower at 7,207.41 points. The group’s shares have added more than 22 percent to their value over the past year, as compared with a near 1.8-percent fall in the Footsie.
Turkish Airlines order
Rolls-Royce announced in a statement late on Friday that it had won an order from Turkish Airlines for Trent XWB engines to power 25 Airbus A350-900 aircraft, including the FTSE 100 group’s TotalCare service support. The airline also has options for a further five aircraft. The companies have not disclosed the value of the deal.
“Turkish Airlines has enjoyed impressive growth over recent years and we are really proud to be playing our part in the next chapter of their story,” Chris Cholerton, Rolls-Royce, President – Civil Aerospace, commented in the statement.
The order marks a boost for the British engine maker which revealed in its full-year results last week that the cost for fixing the issues with its Trent 1000 and Trent 900 engines would broadly double from the total cash cost in 2017 of £170 million and reach a peak this year. It is then expected to fall by around £100 million in 2019.
Analysts on Rolls-Royce
The 18 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 925.00p on the shares, with a high estimate of 1,261.00p and a low estimate of 645.00p. As of March 10, the consensus forecast amongst 21 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.