Rolls-Royce Holdings PLC (LON:RR) said it remains on track to meet its full-year targets as the cost of fixing its crisis-hit Trent 1000 is within budget.
The Trent 1000 engines have been plagued by problems due to premature blade deterioration, leading to the grounding of two Singapore Airlines Boeing Co 787-10 jets in April.
The engine maker said the cost of fixing the Trent 100 engines remains in line with earlier guidance and it continues to expect underlying operating profit and free cash flow of £700mln, up or down by £100mln.
In February, the company said about 35 Dreamliners remained grounded and increased the exceptional charge related to problems with its Trent 1000 engines by £236mln for the full year to £790mln.
“We continue to implement the fixes to improve the health of the Trent 1000 fleet,” Rolls-Royce said in a Thursday trading update.
“Retrofits of the new design of the Intermediate Pressure Compressor (IPC) blade for the Package C variant are underway.
“Additionally, inspections of Trent 1000 TEN High Pressure Turbine Blades (HPTBs) are progressing and work continues on testing a redesigned HPTB for the Trent 1000 TEN ready for introduction into the fleet in early 2020.”
Despite the issues, the company said it has received recent order wins for the Trent 1000 engine.
The group added that trading has been in line with expectations with a strong order intake in the year to date at its power systems business, good flying hour growth in the civil aerospace division, positive order momentum in the defence unit and a strong in-service performance of the Trent XWB-84 engine.
Rolls-Royce has been undergoing a restructuring, which included cost cuts, engineering efficiency improvements and the disposal of its commercial marine business in April.