Rolls-Royce Holdings (LON:RR) is tripling capacity to fix problems which have plagued its Trent 1000 engines, the Financial Times has reported. The news comes after the British group cautioned last month that it needs to increase the number of inspections of the problematic engines, with the move resulting in higher costs.
Rolls-Royce’s share price fell in the previous session, giving up 1.94 percent to close at 827.00p. The stock underperformed the broader UK market, with the benchmark FTSE 100 index shedding 97.74 points to end the session 1.26 percent to 7,632.64, pressured by the ongoing political turmoil in Italy.
Rolls-Royce triples capacity to fix Trent 1000
The FT reported yesterday that Rolls-Royce was tripling the capacity to fix problems with its Trent 1000 engines which have left some of Boeing’s 787 Dreamliner planes grounded.
Reuters meanwhile quoted a spokesman for the British engine maker as saying that the group will set out full details on how it intends to speed up necessary inspections and repairs today. The newswire notes that Air New Zealand and Virgin Atlantic are among the airlines affected by the issues, with turbine blades in the Trent 1000 package C engines not lasting as long as expected and requiring extra inspections.
Analyst ratings update
Citigroup, which sees Rolls-Royce as a ‘buy,’ lowered its price target on the shares from 1,083p to 1,050p today. According to MarketBeat, the British engine maker currently has a consensus ‘hold’ rating and an average price target of 937.27p.
Rolls-Royce announced yesterday that it was launching a new engine family for business aviation, with the introduction of the Pearl, a purpose-built engine which will be the sole engine for Bombardier’s latest business jets.