SA News • Nov. 21, 2014
Update: Rolls Royce Issues Updated Guidance For 2014 And 2015Junius • Oct. 19, 2014
- Rolls Royce issues its second profit warning this year.
- Profit from its nuclear & energy and power systems segments are now expected to be much weaker than previously expected.
- Remain bullish in the long-term, but cautious in the short to medium term because of increasing uncertainty and the potential for further restructuring charges.
Engine Uncertainties Keep Rolls Royce Under Pressure
Nov. 21, 2014, 3:58 AM
- Following Delta's (NYSE:DAL) $14B order for 50 wide-bodied Airbus jets yesterday, Rolls-Royce (OTCPK:RYCEY) has landed a contract to supply the engines to power them.
- The $5B contract includes Trent XWB engines to power 25 Airbus A350s and Trent 7000 engines to power 25 Airbus A330neo aircraft.
- Previously: Delta places $14B jet order with Airbus
Nov. 13, 2014, 7:16 AM
- Rolls-Royce (OTCPK:RYCEY) expects to complete the sale of its energy gas turbine business to Siemens (OTCPK:SIEGY) by the end of the year, paving the way for a £1B ($1.58B) share repurchase.
- The company also affirmed its full-year earnings guidance which it had lowered last month when it announced a major cost cutting drive to boost profitability.
- Previously: Siemens unveils overhaul, confirms $1.3B deal for Rolls-Royce energy business
Nov. 4, 2014, 10:21 AM
- After issuing a major profit warning nearly three weeks ago, Rolls-Royce (OTCPK:RYCEY +1.7%) now says it will cut 2,600 jobs over the next 18 months in a battle to reduce costs.
- The layoffs will mainly come from the company's aerospace division, costing £120M pounds ($192M) over the next two years, before reducing spend by around £80M once the changes have been fully implemented.
- Rolls-Royce has also promoted David Smith from aerospace finance director to become the group's CFO, replacing Mark Morris who leaves after 27 years.
Oct. 17, 2014, 7:50 AM
- Shares of Rolls-Royce (OTCPK:RYCEY, OTC:RRCEF) are in a deep dive in London trading after the company issued a profit warning.
- A revenue decline of 3.5% to 4.0% is now forecast for the year compared to the flat growth guidance issued by Rolls-Royce just a few months ago.
- Trade sanctions made against Russia have been a factor this year.
Sep. 1, 2014, 10:17 AM
- As the U.S. military explores ways to cut costs of its V-22 Osprey aircraft, Rolls-Royce (OTC:RRCEF) may lose its place as the program's sole engine provider.
- "The V-22 Program is continually investigating ways to reduce the life cycle costs of the aircraft," announced the U.S. Navy by email. "Knowing that more than 90% of the operational use of the V-22 is in the future, coupled with budget pressures, it is prudent to investigate alternatives to existing systems and the engine is no exception."
- Each V-22 is currently powered by two Rolls-Royce AE1107C engines.
- The U.S. Marine Corp is in the process of acquiring 360 MV-22s, while the Pentagon this fiscal year is acquiring the last CV-22s for the Air Force. The aircraft are also attracting several overseas buyers.
Jun. 19, 2014, 3:26 AM
- Rolls-Royce (RYCEY) has announced it will repurchase $1.7B shares, due to no major acquisitions being seen in the near future.
- "As no material acquisitions are planned, and reflecting the strength of our balance sheet, we will return the proceeds of the Energy sale to our shareholders," says CEO John Rishton.
- The company sold its industrial gas turbine business to Siemens (SIEGY) in May for £785M. The transaction should be completed this year.
- Rolls-Royce's stock has plunged -19% this year.
Jun. 11, 2014, 3:46 AM
- Airbus (EADSF) has received a major blow after Dubai's Emirates airline cancelled its entire purchase of 70 Airbus A350 jets. The cancellation also stung engine maker Rolls-Royce (RYCEY), the sole engine maker for the A350.
- The deal, which closed in 2007, was worth around $16B ($22B based on the current price catalog). Rolls-Royce commented that the cancellation will result in a £2.6B ($4.4B) loss from its order book.
May. 6, 2014, 5:28 PM
- Siemens (SI) announces a corporate overhaul which will reorganize the company into nine divisions, see its healthcare business managed separately, and its audiology activities publicly listed; SI also confirms it is buying Rolls-Royce's (RYCEY) energy business.
- The £785M ($1.32B) purchase, plus £200M as part of a 25-year development services agreement, aims to strengthen SI's power generation and transmission business.
- Nine divisions will replace SI's four sectors, with healthcare being added an additional unit; the company expects the moves to help boost productivity by ~$1.5B, fully effective by the end of FY 2016.
May. 1, 2014, 8:46 AM
- Iran would purchase 400 new aircraft over 10 years if sanctions were lifted, the country's top aviation official reportedly says. The country has been banned from purchasing new Western airliners since the 1970s.
- Of Iran's 250 commercial planes, about 150 are flying and the rest are "not functional" because of a lack of spare parts. The average age of the nation's commercial fleet is 22 years.
- Under the recent deal with the international community over its nuclear program, Iran is allowed to acquire spare parts and services on a limited basis.
- Companies that could benefit from Iran being allowed to buy aircraft include Boeing (BA), Airbus (EADSY), Bombardier (BDRAF), Embraer (ERJ), GE (GE) and Rolls-Royce (RRCEF).
Apr. 28, 2014, 9:11 AM
- GE will supply engines to power new A330 aircraft for Malaysian budget airline AirAsia X Bhd. in a deal valued at more than $1.5B and the largest of three announced by during Pres. Obama's tour of the country.
- GE will supply engines and related maintenance for 25 new A330 aircraft for AirAsia X, boosting the number of engines GE will have provided parent AirAsia Bhd. to 600.
- With the order, GE becomes AirAsia X's second core engine supplier, along with Rolls-Royce (RYCEY).
Sep. 29, 2013, 2:32 AM
- GE (GE) has obtained a $1B order to supply Vietnam Airlines with engines for a fleet of Dreamliners, with the conglomerate beating out competition from Rolls Royce (RRCEF.PK). The official signing of the deal is set to take place next month.
- The carrier is due to start receiving 19 787-9 aircraft in 2015.
Sep. 19, 2013, 3:38 PM
- Pratt & Whiney (UTX +0.8%) and Rolls-Royce (RYCEY.PK +0.3%) unveiled plans for the joint venture two years ago, but cite the regulatory environment as reason for abandoning it.
- "Pratt & Whitney remains fully committed to this important market segment and will continue independently to invest in and develop applications of its geared turbofan engine to power the next generation of mid-sized aircraft."
- The move comes at a particularly competitive time for the industry and could be seen as a win for GE which is looking to gain market share.
Jun. 19, 2013, 3:33 PMParis Air Show: Rolls-Royce (RYCEY.PK -1.4%) says it wants to cut costs right across its aero-engine business to match the productivity of its major competitors, even as the U.K. engineering company ramps up production to meet booming demand for more fuel-efficient passenger jets. The company says it plans to slim down its portfolio, targeting increased sales of a narrower range of products. | Comment!
Jun. 17, 2013, 1:19 PM
Apr. 18, 2013, 9:52 AMOnce the Boeing (BA) 787's new battery system is approved and flights resume, its Rolls-Royce (RRCEF.PK) Trent 1000 engines will need extra inspections, the European Aviation Safety Agency says. The regulator is worried about the degradation of seals on the engines' intermediate pressure turbine section. The condition "could lead to an in-flight shut-down resulting in reduced control of the airplane," the EASA says. | 1 Comment
Mar. 12, 2013, 8:21 AMBoeing's (BA) board may decide next month to start taking bookings for an updated 777, which would incorporate lightweight carbon-composite wings. Boeing is on the verge of deciding to offer airlines just GE engines for the plane rather than a choice, meaning that Rolls Royce would miss out. Separately, NTSB investigators are narrowing their 787 probe to the batteries rather than other components of the Dreamliner's electrical systems. | 5 Comments
RYCEY vs. ETF Alternatives
Rolls Royce Group is a provider of power for use on land, at sea and in the air. Co. operates through its offices, service centers or manufacturing facilities in 50 countries. Through its subsidiaries and joint ventures, Co. operates in the following business segments: Civil Aerospace, Defense,... More
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