Rolls-Royce Holdings’ (LON:RR) share price has fallen deep into the red in today’s session following a malfunction in one of the group’s Trent 1000 engines over the weekend. The news marks another blow for the British engine maker which has been struggling with the Trent 1000 and last week increased its in-service costs for the problematic engine programme.
As of 15:09 BST, Rolls-Royce’s shares had given up 3.70 percent to 750.60p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.31 percent lower at 7,231.64 points. The group’s shares have given up just under 27 percent of their value over the past year, as compared with about a 5.6-percent fall in the Footsie.
Trent 1000 engine troubles hit RR
Shares in Rolls-Royce have come under pressure today following news that parts from one of its engines had dropped from a Norwegian Boeing 787 taking off in Rome over the weekend. The Telegraph cited local reports and social media as suggesting that 25 cars and a dozen houses in the Rome suburb of Fiumicino were damaged by fragments from the aircraft.
“We are aware of the event and are working with our customer to provide support and technical assistance,” a spokesman for Rolls-Royce said, as quoted by Sharecast. “We are committed to working closely with the airline, aircraft manufacturer and the relevant authorities to support their investigation.”
Today’s news comes after the company said last week that it was increasing its Trent 1000 in-service costs by a total of about £100 million across the next three years.
Analysts on British engine maker
The 17 analysts offering 12-month targets for the Rolls-Royce share price for the Financial Times have a median target of 1,100.00p, with a high estimate of 1,367.00p and a low estimate of 600.00p. As of August 10, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.