Rolls-Royce Holdings (LON:RR) is facing fresh problems with its Trent 1000 engines, with turbine blades wearing out faster than expected, Reuters has reported. The news marks a blow for the company which has been struggling with additional costs to fix the problematic engines.
Rolls-Royce’s share price, however, has surged in London this morning, having added 2.12 percent to 986.50p as of 08:49 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.08 percent lower at 7,539.11 points. The engine maker’s shares have added just under 13 percent to their value over the past year, as compared with about a three-percent rise in the Footsie.
More Trent 1000 problems
Reuters reported yesterday that Rolls-Royce had said that the turbine blades on its Trent 1000 engines were wearing out faster than expected, grounding additional Boeing 787 widebody jets for early repairs. The engine maker noted that the issue may cause ‘additional short-term disruption’ to customers in some cases. A spokesman for the company told the newswire that the exact number of engines assigned for earlier-than-expected repairs related to the turbines blades on Rolls-Royce’s package C series engines was not certain, but it could be as many as 30 or 40.
“The guidance issued today is part of our ongoing management of the intermediate pressure turbine blade issue and applies only to the minority of engines which have not yet had replacement turbine blades fitted,” the spokesman pointed out.
The news comes after earlier this month, an Iberia flight from New York to Madrid was forced to divert to Boston due to problems with one of the FTSE 100 group’s Trent XWB engines.
Analysts on Rolls-Royce
The 16 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 1,010.00p on the shares, with a high estimate of 1,266.00p and a low estimate of 675.00p. As of September 21, the consensus forecast amongst 20 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.