Rolls-Royce share price: Group lands incremental order from United Airlines
Rolls-Royce Holdings (LON:RR) has inked a deal to provide extra engines to United Airlines as the US carrier increased an aircraft order, the British company has said. The move is a boost for the blue-chip engine maker, which continues its recovery under chief executive Warren East.
Rolls-Royce’s share price has drifted into the red in today’s session, having lost 1.07 percent to stand at 891.00p. The stock is underperforming the broader London market, with the benchmark FTSE 100 index having given up 0.36 percent to 7,346.30 points. The engine maker’s shares have added more than 15 percent to their value over the past year, and are up by some 31 percent in the year-to-date.
Rolls-Royce announced in a statement this afternoon that it was set to provide additional Trent XWB engines to United Airlines following the airline’s announcement that it will update and expand the number of Airbus A350 XWB aircraft on order from 35 A350-1000 to 45 A350-900. The UK group will further provide long-term TotalCare support for all the engines. The engine maker, however, did not disclose the financial details of the order.
“This is a significant further achievement for both the A350 and our Trent XWB engine by a highly respected operator,” Dominic Horwood, Director Customers and Services – Civil Aerospace, Rolls-Royce, commented in the statement.
The incremental order comes after the British engine maker updated investors on its interim performance this summer, revealing that its recovery following a string of profit warnings was gaining traction, with profits soaring by nearly 150 percent.
The 19 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 755.00p on the shares, with a high estimate of 1,192.00p and a low estimate of 560.00p. As of September 1, the consensus forecast amongst 22 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.
As of 14:30 BST, Wednesday, 06 September, Rolls-Royce Holding PLC share price is 892.50p.