Rolls-Royce to reassure shareholders it is ‘on track’

Rolls-Royce’s AGM later today will hear how the firm is “on track to deliver” its profit forecasts for 2019, despite the clouds hanging over its Trent 1000 engine performance.

The firm says it expects to posts results for 2019 that range between a profit of £700m and a loss of £100m.

Chief executive Warren East will tell shareholders: “I am pleased to report that trading is in-line with our expectations. We continue to see a healthy market environment, with strong order intake year-to-date at Power Systems, good flying hour growth in Civil Aerospace and positive order momentum in Defence.

“The in-service performance of the Trent XWB-84 remains strong and it has been encouraging to see recent order wins for our Trent 1000 engine.

“Our restructuring programme has continued to make progress as we aim to bring down commercial and administrative costs, improve our engineering efficiency and drive lasting culture change at Rolls-Royce.

“The completion of our disposal of the Commercial Marine business also represents an important milestone, with proceeds received in April. In summary, we remain on track for the Full Year and to deliver our longer-term aspirations.”