Melrose Industries Share Discussion Threads

[jackdaw4243] 27/10/2018 14:03

Brexitplus,
You are incredibly well informed, you will telling us that the problem is with "rotor one blade " in the IP compressor..

RR do have A lot of "off wing problems" and a grounded Dreamliner does cost RR.

[brexitplus] 27/10/2018 13:32

Zimmer

You obviously purposely omitted the paragraphs in the FT earlier in the article.

“For Rolls-Royce the latest delay is just another headache. Issues with its Trent 1000 engine, which powers the Boeing 787 Dreamliner, have forced the company to undertake expensive inspections and repairs, as well as redesign some parts.

It is facing a bill of close to £1bn in cash to resolve turbine blade problems on the Trent 900 and 1000. The delays with the Trent 7000 are understood to be linked to a backlog of engines awaiting testing.

“We would extrapolate that the financial impact on Rolls will be compensation payments to Airbus and the airlines, and a build-up of inventory into the year-end,” wrote Robert Stallard, analyst at Vertical Research Partners.

[brexitplus] 27/10/2018 12:55

So you have no idea of the level of penalties incurred.

I would have thought that with all the recent problems with engines they would have been of interest. The shortfall certainly spooked the market.

[jackdaw4243] 27/10/2018 12:09

Minerve

You must know someone who works there, who picks up the tab for grounded aircraft around the world.

[brexitplus] 27/10/2018 12:09

Well actually I did know about P&W, but we are actually talking about RR.

USING YOUR EXPERTISE, what level of financial penalties do you think will be incurred by RR within the Airbus contract for failing to deliver the engines to schedule?

And I believe that back in June I said that I didn’t think RR would be able to meet its ambitions.

Now you say you anticipated problems. I don’t think you conveyed that to your adoring public here at the time.

PS. life is too short not to enjoy it. And if you would like to buy me a dog, a collie is my preference, I will happily send you my address. I will then enjoy walking it, or attaching it to my bike for it to run along side me.

[minerve] 27/10/2018 11:55

brexit

Airbus will be annoyed but it isn't like they can go elsewhere and Airbus also have had problems in the past that stem suppliers so it works both ways.

Clutching at straws me thinks. Keep on. You are a funny chimp.

[brexitplus] 27/10/2018 11:52

There you go changing the subject to suit your argument. I wasn’t talking about myself or Melrose.

Airbus will be suitably annoyed that RR is not able to meet its commitments. It’s not a good precedent for the future.

[minerve] 27/10/2018 11:52

Think of all those flight hours that need service/maintenance in the future. Where RR makes its money. And those planes will have to be replaced too eventually. Competition will come from China, Russia, perhaps Brasil, but nevertheless the future does look very bright for RR. It will be a very long time before we have electric long-haul. LOL

[minerve] 27/10/2018 11:49

Both Airbus and its arch rival Boeing have been hit by supply chain issues as they try to deliver a record number of aircraft. ➡️ The two companies have order backlogs of around a decade ⬅️

LOL

Do you think Rolls Royce isn't going anywhere Brexit? Please provide your rationale.

[minerve] 27/10/2018 11:45

Rolls-Royce said it would deliver fewer of its Trent 7000 engines to Airbus than expected this year because of difficulties in production, at a time when aircraft manufacturers are grappling ➡️ with record orders ⬅️.

[minerve] 27/10/2018 11:42

“The P&L [profit and loss] impact could ironically be positive, as the Trent 7000 OE [original equipment] deliveries will be loss making, with the returns coming from the after-market.”

LOL

For now yes, but not in the near future for some engines. XWB engine costs will eventually lower so engine sales will at least be 'at cost'. Currently engines are sold at c£2M loss per engine.

[minerve] 27/10/2018 11:03

brexit

You are wrong. I have told you some of the reasons why Melrose isn't likely to grow by that much and you have ignored them. I have subsequently come back and then mentioned the share price falling. I haven't come back here and reminded shareholders of the fall for quite a while. I could have come back and laughed because it is a shocker. But I have a friend here and sharing his sympathies is more important to me than teasing chimps like you.

Go back and have a look. I did mention the pension fund at one point. GKN has one of the worst pension liabilities in the FTSE 100. GKN were managing it but it becomes more difficult when assets fall and liabilities rise.

PE and large pension liabilities are not good stable mates.

RR's problems are due to ramp-up in manufacturing. Not a bad problem, eh? But a problem nevertheless. For decent investors like me, especially with my engineering background, yesterday's news was no surprise. When I watched one of their presentations about 8 months ago I half-guessed there might be problems. When a company like RR introduces three new engines in a short space of time you increase risk of manufacturing logistics and reliability risk. One has come to the fore. Guidance is still in-line so they are doing better elsewhere.

Very happy to be in RR and not in Melrose. :)

[brexitplus] 27/10/2018 10:15

Any sign of the Definitive Guide to Small Company Investing yet??

[brexitplus] 27/10/2018 10:15

May I suggest to Zimmer that he is a bit of a hypocrite. When other posters’share prices fall, even when they have excellent fundamentals, he laughs, but when his holdings fall it is justified by them having good fundamentals.

Regarding RR, it has promised a lot and appears to be falling at the first hurdle. Yesterday’s RNS sounded a bit like a prelude to a profit-warning. (By the way, speaking of hurdles, went racing at Cheltenham yesterday). In June it published its “ROLLS-ROYCE OUTLINES MID-TERM AMBITION”, ambition being the operative word.

I might also point out that yesterday’s news of the shortfall in shipped engines was “leaked” following internal communications to staff, and RR had to rush out a RNS to confirm. Not good practice.

I don’t know if RR goes in for trading updates, but if it does it will be interesting!!!

[minerve] 26/10/2018 21:40

MEANWHILE

I enjoyed your lesson today. Probably lost on you know who! ;)

[minerve] 26/10/2018 21:32

I actually read what brexitplus wrote. Filter switched off on all ATM.

Rolls Royce will deliver. I would like to know what rationale the resident expert has to suggest RR will not deliver. Is it a hunch? LOL

Here is some advice Brexit: concentrate on the business not the share price share price is irrelevant most of the time.

[minerve] 26/10/2018 21:16

Depeche Mode went very dark. My GF is very keen on DM.

[brexitplus] 26/10/2018 21:15

Re RR, I believe I said a few months ago that I didn’t trust them to deliver. Perhaps Noddy, Big Ears and PC Plod would do a better job than East!!!

[essentialinvestor] 26/10/2018 21:12

That takes me back!, Have not heard that one for an age.
Depeche Mode took a darker turn when Vince left to form Yazoo, then Erasure.
I'm a fan of Martin Gore's song writing.


Some of the MCX stocks bounced quickly from their opening lows today
had some BOY near the open. Next week's going to be interesting.

[jackdaw4243] 26/10/2018 20:50

Let's hope MRO don't choke on the roast that they have cooked as it's maybe too big to swallow.