Rolls-Royce Holdings (LON:RR) is wrestling with a shortage of parts needed to repair hundreds of faulty engines, Bloomberg reports. The news comes after the company reported more problems with its Trent 1000 engine earlier this week, disclosing that it had discovered issues with another batch of the engines.
Rolls-Royce’s share price has fallen into the red in today’s session, having given up 0.28 percent to 839.07p as of 14:16 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.36 percent higher at 7,731.46 points.
Trent 1000 parts shortage
Sources with knowledge of the matter told Bloomberg that the fix for the excessive wear on Rolls-Royce’s Trent 1000 turbines was taking about three days longer than planned in some cases due to a shortfall in stocks of compressor blades. The people further noted that the number of idled jets as a result of the issue had reached 43 last week.
The engine maker meanwhile told the newswire that extra maintenance work on Trent 1000 engines had placed additional pressure on its component manufacturers.
“Their response has been exemplary and we are confident that the initiative shown by all our suppliers is making an important contribution to the containment and resolution of this issue,” the company said.
Analysts on engine maker
The 17 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 900.00p on the shares, with a high estimate of 1,279.00p and a low estimate of 675.00p. As of June 8, the consensus forecast amongst 21 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.