TRENT 1000 SERVICE MANAGEMENT UPDATE
In April this year Rolls-Royce provided an update on the management of a durability issue affecting the Intermediate Pressure Compressor in a population of Trent 1000 engines, known as Package C engines. An update on the company's operational response to this issue was provided on May 30.
A similar Intermediate Pressure Compressor durability issue has now been identified on a small number of high life Package B engines. We have therefore agreed with Boeing and the relevant regulatory authorities to carry out a one-off inspection of our Trent 1000 Package B fleet, to further inform our understanding. The Package B standard has been in service since 2012 and consists of 166 engines.
While the consequences of the additional inspection requirements for Package B engines will incur some additional cost, this together with our latest understanding of the Package C service impact forecast and the mitigating actions we continue to take across the group, enable us to be confident that our FY18 guidance for Group FCF of around £450m +/- £100m remains unchanged.
Further information is available on www.rolls-royce.com/media
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 50,000 people in 50 countries. More than 18,200 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.