Engine failure will hit bottom line – Rolls-Royce
Rolls-Royce has said the consequences of the recent fire in one of its Trent 900 engines, which caused a Qantas A380 superjumbo into an emergency landing, will impact on the business' financial performance.
The Derby-based power systems company added that trading for the period from 1 July to 11 November was in line with expectations.
However, because of the Trent 900 incident, Rolls-Royce now expects underlying profit growth for the full year to be "slightly lower" than previously anticipated.
The company said this would be offset to a degree by improved performance in its marine and defence businesses.
Chief executive Sir John Rose said: "Safety is the highest priority of Rolls-Royce. This has been demonstrated by the rapid and prudent action we have taken following the Trent 900 incident.
"We have instigated a programme of measures in collaboration with Airbus, our Trent 900 customers and the regulators. This will enable our customers progressively to bring the whole fleet back into service. We regret the disruption we have caused.
"This event and the consequent actions will have an impact on the group's financial performance this year. However the scale of our order book, the breadth and mix of our portfolio, the global nature of our business and our strong balance sheet makes Rolls-Royce a resilient business, and we expect continued underlying profit growth in 2010."
