Rolls-Royce (LON:RR) has warned of fresh problems affecting around 200 of its engines, The Telegraph has reported. The news marks another blow for the blue-chip group which recently confirmed that it would deliver fewer Trent 7000 engines than expected in the last quarter of the year.
Rolls-Royce’s share price has fallen deep into the red in today’s session, having given up 1.85 percent to 818.00p as of 14:36 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 currently standing 0.67 percent lower at 7,093.11 points. The blue-chip group’s shares have given up just under 12 percent of their value over the past year, as compared with about a 5.3-percent dip in the Footsie.
Rolls-Royce flags engine problems
The Telegraph reported today that Rolls-Royce had revealed that about one in 10 of its Trent 700 engines needed repairs because of corrosion to turbine blades. The group told operators of the engine, which powers the Airbus A330 airliner, that the problem did not require an immediate fix.
The newspaper quoted a spokesman for the British engine maker as noting that the issue affected the high pressure turbine on engines which have been “operating in a particular environment,” causing the corrosion.
The news comes amid Rolls-Royce’s ongoing issues with its Trent 1000 programme, with the company struggling with additional costs to fix the problematic engines.
Analysts on blue-chip group
The 16 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 964.87p on the shares, with a high estimate of 1,259.00p and a low estimate of 675.00p. As of November 2, the consensus forecast amongst 20 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.