Rolls-Royce Holdings (LON:RR) has scaled back efforts to join a Turkish programme to build a new fighter jet, the Financial Times has revealed. The news comes after the British engine maker updated investors on its full-year performance last week, and disclosed that it had decided to pull out of a competition to power a new Boeing platform.
Rolls-Royce’s share price fell in the previous session, giving up 5.24 percent to close at 905.00p. The group’s shares have added more than 10 percent to their value over the past year.
RR scales back on Turkish project
The FT reported yesterday that Rolls-Royce, which had been working with the Turkish industrial group Kale to bid for the contract to develop the engine on the TF-X jet, had all but abandoned its efforts to win the bid for the fifth generation fighter aircraft, according to sources with knowledge of the matter. Talks reportedly ran into problems last year due to a dispute over the sharing of intellectual property and the involvement of a Qatari-Turkish company.
Rolls-Royce’s chief executive Warren East told the FT that the company had ‘substantially ramped down’ on the TF-X project and ‘been re-assigning people’ to other schemes. He further noted that the company had ‘satisfied a number of conditions’ to enable Turkey to create an engine that was indigenously produced.
“We’ve given what we believe is our best offer in terms of the conditions around that,” he told the newspaper.
Analysts on British engine maker
The 16 analysts offering 12 month price targets for Rolls-Royce for the FT have a median target of 1,032.50p on the shares, with a high estimate of 1,250.00p and a low estimate of 780.00p. As of March 2, the consensus forecast amongst 19 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.