LONDON (dpa-AFX) - Rolls Royce Holdings plc (RYCEF.PK, RR.L, RYCEY.PK) Monday said that it is confident that fiscal 2018 guidance for Group Free cash flow of around 450 million pounds +/- 100 million pounds remains unchanged. This is despite costs on inspection of Trent 1000 Package B fleet due to Intermediate Pressure Compressor durability issue.
In its update on Trent 1000 Management service, the company noted that in April this year, it 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.
A similar Intermediate Pressure Compressor durability issue has now been identified on a small number of high life Package B engines.
The company said it has agreed with Boeing and the relevant regulatory authorities to carry out a one-off inspection of Trent 1000 Package B fleet, to further inform the company's understanding. The Package B standard has been in service since 2012 and consists of 166 engines.
According to the company, the consequences of the additional inspection requirements for Package B engines will incur some additional cost.
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