Rolls-Royce Holdings

Ticker RR.

Today's data summary

Market closed
% change
+1.17%
Price Pence
762.80
Change
+8.80
As of 02:39 20 Aug 2019
Market cap. Pound sterling
14,645.80 million
As of 02:39 20 Aug 2019

Latest updates

Rolls-Royce shares lower

trent 1000 enging
ROLLSROYCE

Rolls-Royce is still down more than 3.5% after reports that parts of an engine fell from a Boeing 787 Dreamliner near Rome. The FTSE 100-listed company makes the Trent 1000 engines used in the planes.

Cars and 12 houses were damaged in Fiumicino, close to the airport, after the engine of a Norwegian Boeing 787 Dreamliner malfunctioned, according to reports.

FTSE turns lower

LSE logo
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Quick market update.

The FTSE 100, which started the day 0.6% higher, is now down 17 points at 7,236.11.

"Events in Hong Kong threaten to overshadow equity markets on Monday. Reports that authorities have closed the airport in Hong Kong sent markets lower after what had been a positive open in Europe," said Neil Wilson, chief market analyst at markets.com.

Marks & Spencer is leading the gainers, up 1.1%.

Rolls-Royce is the biggest faller, down 3%, which Reuters says is caused by reports that fragments of an engine fell from a Norwegian Boeing 787 Dreamliner near Rome, Italy. Rolls-Royce's Trent 1000 engine powers the Boeing 787 Dreamliner.

Rolls-Royce leads the FTSE 100 losers

Rolls-Royce engine
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Rolls-Royce was the worst-performing share in the FTSE 100 today. It fell 6.87%, or 56, to 759.

NMC Health had almost as bad a day, slumping 6%, or 144, to 2,258.

Other losers included Centrica, which fell 2.67%, Mondi 2.51%, and Smurfit Kappa 2.21%.

The main risers were RBS, up 1.65%, Spirax-Sarco Engineering 1.65% and Halma 1.14%.

Rolls-Royce: still 'work to be done'

Rolls-Royce engine
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The troubles aren't over for Rolls-Royce but the signs are good, reckons George Salmon of Hargreaves Lansdown.

This morning the engineering giant said losses narrowed considerably in the first half of the year. But the company revealed ongoing trouble with its Trent 1000 engine.

Its shares have fallen 5.52% to 770 today.

Mr Salmon said:

There’s still work to be done before Rolls-Royce emerges as a more simple, efficient and dynamic business, so investors require a higher than usual degree of trust and understanding. But that doesn’t mean to say it’s all wishful thinking. Warren East has started to deliver tangible signs of progress – for example, successfully reducing losses from original equipment sales in the key Civil Aerospace division. The fact the group has reiterated its confidence in the short-term outlook despite the ongoing Trent issues is surely another plus.

Rolls-Royce losses narrow

Rolls-Royce plane engine
Getty Images

Losses at engineering giant Rolls-Royce narrowed considerably in the first half of the year. But the company revealed ongoing trouble with its Trent 1000 engine.

Nevertheless, the firm reported a loss that slimmed from £1.2bn a year ago to £791m in the first half of 2019.

Last year, a fault with Rolls-Royce's Trent 1000 engines grounded planes at British Airways and other airlines. The engine powers Boeing's 787 Dreamliner.

At the time, the company said the issues would take "some years" to fix. It said parts in its Trent 1000 engines were wearing out faster than expected but that it "had a solution" to the problem.

Rolls-Royce 'prepared for no-deal Brexit'

Today Programme

BBC Radio 4

Rolls-Royce engineer
PA Media

Rolls-Royce chief executive Warren East has said that his company is ready for a no-deal Brexit if it happens.

He told the Today programme that the firm was as prepared as it had been in March for the UK's departure from the EU.

And he added: "We’ve grown the amount of inventory that we have and other measures to deal with issues around Brexit, at a total cost of around £100m.

"We would obviously prefer a deal, because that is the best chance of providing certainty for business, but we’ve always been prepared for a no deal of some kind.

"We’re not a 'just in time business' and we are actually in a much stronger business than others.

"Most of our business is in aerospace and WTO rules apply anyway."

Rolls-Royce looks to electric aircraft

Today Programme

BBC Radio 4

Conventional plane
Getty Images
Could planes be less polluting in future?

This week's Paris Air show has seen Rolls-Royce step up its push to be greener by buying German industrial giant Siemens's electric and hybrid-electric “eAircraft” division, in a deal believed to be worth about €50m (£45m).

Chief executive Warren East told the Today programme: "There has to be a future in aerospace beyond setting fire to hydrocarbons."

He denied that the air industry had been slow to tackle carbon emissions and climate change, saying refinements of existing technology had made planes less polluting. "Actually, getting on an aeroplane compared with, say, 20 years ago is probably in order of 25% more efficient."

Mr East refused to be drawn on the continuing political uncertainty surrounding Brexit, saying Rolls-Royce was "ready for whatever outcome materialises".

"We have to leave the politics to the politicians," he added.

Rolls-Royce: possible deal for Spanish unit

Engine and a man wearing a Rolls-Royce jacket
reuters

Engineering company Rolls-Royce says it received "a preliminary and conditional indication of interest" from Indra, the Spanish company, to acquire a majority stake in its Spanish operations, ITP Aero.

"This indication of interest is subject to a number of conditions. There is no certainty that this will result in a transaction involving ITP Aero," Rolls-Royce said.

Rolls-Royce, which owns 100% of ITP Aero, said it intends to retain a long-term relationship with the business across its civil aerospace and defence programmes.

Pensions switch announced by Rolls-Royce

BBC Business Live

Rolls-Royce says its UK pension trustee has completed a deal to transfer certain pension risk liabilities to Legal & General.

The deal covers the transfer of assets and liabilities relating to approximately 33,000 pensioners who are members of the Rolls-Royce UK Pension Fund out of a total of 76,000 members.

Rolls-Royce engine
Reuters

Rolls-Royce will make an exceptional cash contribution of about £30m. Alongside the transfer of about £4.1bn of liabilities to Legal & General, the Rolls-Royce trustee will also transfer about £4.6bn of assets.

Joel Griffin, head of global pensions & benefits at Rolls-Royce, said: "This agreement will result in increased security for Rolls-Royce pensioners and reduced risk for our business."

Rolls-Royce pension transfer

Rolls-Royce logo on a plane
Getty Images

Engineering company Rolls-Royce says its UK pension trustee has completed a deal to transfer certain pension risk liabilities to Legal & General.

The deal covers the transfer of assets and liabilities relating to approximately 33,000 pensioners who are members of the Rolls-Royce UK Pension Fund out of a total of 76,000 members.

Rolls-Royce will make an exceptional cash contribution of around £30m. Alongside the transfer of around £4.1bn of liabilities to Legal & General, the Rolls-Royce trustee will also transfer around £4.6bn of assets.

Joel Griffin, head of global pensions & benefits at Rolls-Royce, said: "This agreement will result in increased security for Rolls-Royce pensioners and reduced risk for our business.