Rolls-royce Share Discussion Threads

[arf dysg] 06/2/2018 17:07

WOMAN WHO FAINTED ON THE LONDON EYE SAID TO BE COMING ROUND SLOWLY

POST-BREXIT STATUS TO BE "FREE UNITED KINGDOM WITH INDEPENDENT TRADING STATUS"

UNDER-18s TOO IMMATURE TO VOTE, SAYS MINISTER FROM PARTY TOO USELESS TO GOVERN

INGVAR KAMPRAD'S FUNERAL POSTPONED AS NO-ONE CAN ASSEMBLE HIS COFFIN

[rogerrail] 31/1/2018 15:59

some interest being generated to aquire the marine business:

hTTtp://www.gulf-times.com/story/579935/Rolls-Royce-marine-unit-is-said-to-draw-European-a

[rogerrail] 22/1/2018 14:43

Nice order for the Trent 1000 TEN for 10 787's



Fingers crossed they follow this up with an engine order for 40 787's for Emirates and the 36 A380's recently ordered.

[wad collector] 17/1/2018 13:31

15 January 2018

STATEMENT RE: PRESS SPECULATION

Rolls-Royce notes the recent media speculation and confirms that it is reviewing its strategic options for L'Orange.

Irrespective of the outcome of this review, Rolls-Royce intends to maintain close ties to L'Orange, either as an owner or as a key customer.

This review has no impact on the remainder of the Rolls-Royce Power Systems business and any decision about the future of L'Orange would be subject to the approval of the Supervisory Board of Rolls-Royce Power Systems.

A further announcement will be made as appropriate.



That made no impact on the share price , whilst today's announcement seems to be well received.
ROLLS-ROYCE ANNOUNCES FURTHER SIMPLIFICATION OF BUSINESS,

STRATEGIC REVIEW OF COMMERCIAL MARINE OPERATION

AND PLANS TO RESTRUCTURE SUPPORT AND MANAGEMENT FUNCTIONS

Rolls-Royce announces that it is embarking on a further simplification of the business, including the evaluation of strategic options for our Commercial Marine operation and a reduction from five operating businesses to three core units based around Civil Aerospace, Defence and Power Systems. As part of this exercise, we plan to consolidate our Naval Marine and Nuclear Submarines operations within our existing Defence business, and Civil Nuclear operations within our Power Systems business. This will facilitate a more fundamental restructuring of support and management functions in particular.

These actions are designed to align our business more closely with our strategic vision to pioneer cutting-edge technologies that deliver vital power. It will allow us to better capitalise on our relationships with Defence customers and our market leading widebody position within Civil Aerospace, while strengthening our technology capabilities across a broad range of power generation applications. We would expect the subsequent restructuring to deliver an additional reduction in costs and assist us in improving performance from our core businesses and the whole Group. We are in the process of defining this restructuring and further details will be given at the time of our 2017 financial results on 7 March 2018 and a fuller discussion at a Capital Markets event later this year.

Chief Executive Warren East said: "Building on our actions over the past two years, this further simplification of our business means Rolls-Royce will be tightly focused into three operating businesses, enabling us to act with much greater pace in meeting the vital power needs of our customers. It will create a Defence operation with greater scale in the market, enabling us to offer our customers a more integrated range of products and services. It will also strengthen our ability to innovate in core technologies and enable us to take advantage of future opportunities in areas such as electrification and digitalisation."

"Alongside the simplification into three operating businesses, we must continue to address the cost and complexity of the structures that support and serve these businesses, including our corporate head office, with greater decisiveness. Taking this action now will help secure the long-term benefit for our business and stakeholders of the growing cash flows that will be generated over the coming years. At the same time, our operational teams must continue to focus on managing in-service issues within Civil Aerospace and delivering the current increase in engine production."

[rogerrail] 15/1/2018 15:39

Order from Turkish airlines for 20 A350's with options for 5 more, and separate order for 5 x A330 tankers for Europe

[rogerrail] 15/1/2018 15:31

RR looking to sell L'orange :

[standish11] 14/12/2017 13:07

It is well documented that RR has had reliability problems with its Tremt 1000 engines on the Boeing 787 and it will be interesting to see whether the recently introduced Trent 1000 TEN resolves the problems.
Meanwhile the competing GE engine continues to experience significant problems as the incident at Amsterdam earlier this week illustrates:-
Incident: KLM B789 at Amsterdam on Dec 10th 2017, engine stall
By Simon Hradecky, created Monday, Dec 11th 2017 23:54Z, last updated Monday, Dec 11th 2017 23:54Z
A KLM Boeing 787-900, registration PH-BHC performing flight KL-891 from Amsterdam (Netherlands) to Chengdu (China), was in the initial climb out of Amsterdam's runway 36L when the crew declared PAN PAN PAN, PAN PAN PAN reporting an engine (Genx) failure right after takeoff. The aircraft levelled off at FL060, the crew reported they had lost thrust on their left hand engine, they wanted to dump fuel. The crew subsequently reported the engine had stalled, it was still running at idle thrust. The aircraft climbed to FL070, was vectored over the North Sea, dumped fuel and returned to Amsterdam for a safe landing on runway 27 about 35 minutes after departure.

The occurrence aircraft is still on the ground in Amsterdam 24 hours after landing back.
It is perhaps worth mentioning that from a RR standpoint the Trent XWB has performed exceptionally well so far.

[rogerrail] 14/12/2017 12:24

Avolon may increase initial order for 15 A330 aricraft:

[rogerrail] 14/12/2017 11:58

About 5 yrs ago, RR with their RB282 were mysteriously dumped on the Falxon 5x program in favour of a Snecma "Silvercrest" Engine Development. Well both Safran and Dassault have had their fingers well a truly burnt :



Unfortunately Dassault have now switched to P&W Canada( that will be good for the euro economy eh!!)

However RR will still benefit from this disaster

1. Delayed competition for RR powered business jets
2. Taken together with the Failure by Snecma to develop the indigenous Indian jet engine the Kaveri , RR is now undoubtedly the only serious jet engine developer in the Europe. With further expansion and integration of RR in europe particularity in Germany and Spain , any new joint European fighter jet as currently being proposed by France and Germany will need RR involvement and very likely RR will provide the core technology .

[rayrac] 14/12/2017 11:24

Well, as long as they win new orders on technical expertise and reliability. But I’ve grown very wary of RR and their performance against GE’s engines. Time the government let it off the leash?

[standish11] 10/12/2017 20:28

Qatar order for 24 Typhoons just announced should be good news for Rolls. On the commercial engine front the Singapore Airshow in earl February could bring further news of orders as it is a part of the world where RR has done particularly well in recent years.

[rayrac] 08/12/2017 15:50

About time we had an rns, stating they’d taken in new engine orders? When was the last one!

[grahamburn] 08/12/2017 15:02

Plus, according to a report in The Times today, a government consultation document is negative on the cost benefits of mini nuclear reactors:



Some extracts:

"Companies including Rolls-Royce and Nuscale have been vying to secure the government’s support for their reactor designs but instead were left with a new “expert finance group to advise how small reactor projects could raise private investment in the UK”.

and:

"Alan Woods, strategy director of Rolls-Royce’s nuclear business, welcomed the expert review into financing SMRs but said: “We do need more, we cannot continue to invest as an industry without any signal. We have been doing this now for two years under the competition. It is critically important we get some form of forward roadmap from government pretty quickly.”

Mick Gornall, of Westinghouse, another SMR developer, said that the government had been “prevaricating” and said: “If the signals don’t come the industry will lose heart.”

Rolls-Royce also said its design had not been part of the assessment and claimed it could build a first reactor for a lifetime electricity cost of £75 per megawatt-hour.

Rolls-Royce was originally planning 220-megawatt reactors but is now pushing a 440-megawatt reactor design — almost as big as some of Britain’s original Magnox reactor fleet and technically above SMR classification.

[rogerrail] 06/12/2017 12:43

Further to previous posts on SMR's , wondering if these two bits of news are connected:

[waldron] 20/11/2017 09:41

New Accounting Rule to Revamp Firms' Financials -- WSJ
20/11/2017 8:02am
Dow Jones News

Rolls-Royce (LSE:RR.)
Intraday Stock Chart

Today : Monday 20 November 2017
Click Here for more Rolls-Royce Charts.

By Nina Trentmann

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 20, 2017).

Finance managers at Rolls-Royce Holdings PLC two years ago predicted a plunge in the aircraft engine maker's 2018 revenue and profit.

Starting Jan. 1, 2018, Rolls-Royce will no longer be able to put money from maintenance contracts on its books years before it begins to do the work. The company must wait to record that revenue until the actual service is provided, said John Dawson, director of investor relations. This is typically years after the company sells the engines at a loss.

The change is the result of a new accounting standard that will force businesses in more than 100 countries to rejigger how they recognize revenue. It is similar to a rule U.S. public companies will have to follow as of Dec. 15.

The new rules come as Rolls-Royce's order book is growing. Customers have placed around 500 orders for large engines that include Rolls-Royce's "TotalCare" maintenance program for next year, up from 450 this year and around 320 in 2016. When executives at Rolls-Royce recalculated some of the company's 2015 results using the new accounting rules, both revenue and profit were GBP900 million ($1.18 billion) lower than reported.

Rolls-Royce started updating investors, analysts and other stakeholders about potential changes to its financials about a year and a half ago, earlier than most other companies. "We have been proactive in handling this," said Mr. Dawson.

The new rules will supersede virtually all existing revenue recognition requirements under International Financial Reporting Standards. A similar change is under way with U.S. Generally Accepted Accounting Principles. Under both standards, companies will be required to provide more detailed information about their contracts and accounting judgments, some of which they haven't gathered before.

Some sectors, such as telecommunications, media and pharmaceuticals, are expected to be affected more than others. So far, 29% of FTSE 100 companies still haven't disclosed an impact assessment, according to a September report by KPMG LLP.

"The impact will vary, depending on the individual company, their sector and their business model," said Nick Chandler, a partner at KPMG. The new revenue standard "requires a far deeper understanding of companies' contracts than previous rules. It's a huge exercise," Mr. Chandler said.

According to the KPMG study, only a small number of firms -- 9% -- expect the new rules to have a material effect. Still, all listed companies filing results under international financial reporting standards must publicly disclose that they have assessed the impact.

Deutsche Telekom AG is one company that expects a material change to its financials. The German telecommunications company's 2018 opening balance sheet will reflect a one-time increase of EUR3 to EUR4 billion ($3.5 billion to $4.7 billion) in retained earnings.

Going forward, the company is expected to post lower revenue in its mobile-service business but higher revenue in its hardware business starting from the first quarter.

The company also will have to provide more details about how it subsidizes the cost of a mobile phone with revenue from contracts sold alongside the device, said Guillaume Maisondieu, head of group accounting.

Deutsche Telekom has had around 50 people working on implementing the new standard for the past two years, Mr. Maisondieu said. That compares with several hundred employees are involved with preparing the company's financial statements.

The company plans to host webinars and calls to educate investors and other stakeholders about the accounting changes early next year, Mr. Maisondieu said.

By contrast, competitor Vodafone Group PLC has only indicated that the rules will apply to its results for the financial year commencing April 1, 2018. "We will have something to talk about later this year," said a spokesman of the British telecommunications firm.

Analysts say companies' impact assessments of accounting rules help them adjust their forecasts.

"In terms of my models, there were many material changes to the numbers in the profit and loss account" for Rolls-Royce, said Sandy Morris, an analyst at Jefferies LLC who covers the company. Mr. Morris said the company's disclosures and information sessions "were extremely helpful."

But not every company is so forthcoming. There have been limited instances of companies sharing "insightful" information, said Vincent Papa, director of financial reporting at the CFA Institute, the global association of investment professionals. "Many companies seem to be crawling to the starting line," he said.

The last opportunity for companies to disclose the potential impact of the new rules is in their financial results for the period ending Dec. 31, said KPMG's Mr. Chandler. These are usually filed six to eight weeks after companies close their books.

Germany's SAP SE has indicated the new accounting standard won't be material for its revenue. Still, some components of the balance sheet at SAP could look different next year, said finance chief Luka Mucic. "The transition to the new standard requires a considerable amount of work," he said.

[standish11] 17/11/2017 08:24

Mrs at wanted an economy that was not dominated by militant trade unions. Low wage increases are a feature of the global economy a present e.g.USA,Japan,Germany,UK,France.

[rogerrail] 16/11/2017 20:48

Evening Standard article pumping RR bid to build SMRhTTps://www.standard.co.uk/business/anthony-hilton-rollsroyce-could-have-what-hammond-needs-a3692606.htmlUnfortunately Mrs T wanted a service economy and after all governments since have followed her lead, that's exactly what we have, along with the low wages that go with it. So no point government bleating on about low productivity if they are not prepared to do what's necessary to change it.

[careful] 16/11/2017 12:25

but many other companies in the same position as RR. do not bother.

[grahamburn] 16/11/2017 12:18

Try this (for a start) which explains the individual shareholder's position regarding the payment (not necessarily the reason why the company uses this mechanism):



As the link states, it's implications make the payment tax free for most people, except those who have to complete a CGT return each year. Undoubtedly, it's a bit of a pain for those few individuals, but once you get the hang of it, it's a straightforward calculation using the figures provided each six months by the company. As a side effect, it does reduce the original acquisition cost as you go along.

[minerve] 16/11/2017 12:05

grahamburn

Yes, you are right. I read the same years ago.

[grahamburn] 16/11/2017 11:51

You need to go way way back (many years) to see the rationale for the use of C shares (ie return of capital rather than a dividend as such).

From memory it's because there are distinct corporation tax advantages for the company due to the high level of foreign earnings.... but sure someone will have the info at their fingertips.

nb Sorry can't be bothered to go back to look at the relevant announcement, though it might be on their website somewhere.

[minerve] 16/11/2017 11:12

Take the cash and then buy back in on your timing and not theirs.

[tonsil] 16/11/2017 11:10

Seems like the divi is in C shares

amy views on keeping them or the other options?