26 October 2018
STATEMENT re TRENT 7000. FULL YEAR GUIDANCE CONFIRMED
Rolls-Royce confirms that it expects to deliver fewer Trent 7000 engines in Q4 2018 than originally planned, reflecting early stage production ramp up challenges. As a result, we are likely to fall short of our prior engine delivery projection of approximately 550 large engine deliveries for 2018, and are now expecting to deliver approximately 500 engines.
While we regret the impact this will have on our customers, we are today re-iterating our financial guidance for 2018 profit and free cash flow as provided at the time of our interim results in August 2018.
Our priority has always been to ensure that the Trent 7000 engine meets customer expectations on entry into service and we have seen very good performance attributes during a rigorous testing phase. We continue to work very closely with Airbus and our customers on the details of the delivery schedule. While the production ramp up issues in Q4 are regrettable, such issues in the early stages of a new engine program are not uncommon in our industry. As we move into 2019 we are confident that Trent 7000 production and delivery volumes will increase significantly to meet our customer commitments.
Further information can be found at www.rolls-royce.com
About Rolls-Royce Holdings plc
1. Rolls-Royce pioneers cutting-edge technologies that deliver the cleanest, safest and most competitive solutions to meet our planet's vital power needs.
2. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 4,000 marine customers including 70 navies, and more than 5,000 power and nuclear customers.
3. Annual underlying revenue was £15 billion in 2017, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £78.5 billion at the end of December 2017.
4. In 2017, Rolls-Royce invested £1.4 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.
5. Rolls-Royce employs 55,000 people in 50 countries. Approximately 19,400 of these are engineers.
6. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2017 we recruited 313 graduates and 339 apprentices through our worldwide training programmes.
For further information, please contact:
Jennifer Ramsey
Head of Investor Relations
Rolls-Royce plc
Tel +44 (0) 20 7227 9087
[email protected]
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel +44 (0) 20 7227 9163
[email protected]
www.Rolls-Royce.com
