Rolls-Royce Holdings (LON:RR) has won an engine order from Delta Airlines, the London-listed group has said. The news marks a boost for the British engine maker which recently warned that about one in 10 of its Trent 700 engines needed repairs because of corrosion to turbine blades, with the problems coming on top of issues with the group’s Trent 1000 engines.
Rolls-Royce’s share price has been little changed in London in today’s session, having inched 0.1 percent higher to 805.00p as of 13:31 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.59 percent higher at 7,055.41 points. The group’s shares have lost about eight percent of their value over the past year, as compared with about a 4.4-percent dip in the Footsie.
Group lands Delta order
Rolls-Royce announced in a statement on Friday that it had won an order from Delta Air Lines for Trent 7000 engines to power 10 Airbus aircraft. The company said that the order also included the engine maker’s TotalCare service support. The latest order takes the total number Delta Air Lines Trent 7000-powered A330neos to 35, following an order for 25 aircraft in 2014.
“This is a great endorsement of the A330neo and Trent 7000 combination,” Chris Cholerton, Rolls-Royce, President – Civil Aerospace, commented in the statement, adding that the company was “seeing real momentum building in the marketplace”.
Analysts on Rolls-Royce
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 17, the consensus forecast amongst 20 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.