Rolls-royce Share Discussion Threads

[standish11] 29/6/2018 10:14

As Rolls won the contract to provide the diesel and gas turbine engines for the Type 26 frigates for the Royal Navy I imagine they must be strong favourites to land the propulsion contract for the Australian frigates whose design is based on the Type 26.

Qatar has now added 9 Hawk jets to its Typoon order also powered by RR.

[wad collector] 28/6/2018 09:06

I see that Kepler Cheuvreux didn't exist when I first started dealing , so I think they are the numptys Minerve.
Anyway, pleased to see that these look set to break £10 again soon . I might topslice if they do; not sure the wider market isn't headed for a correction soon.

[standish11] 27/6/2018 18:44

Maybe this triggered today's rise.

Goldman Sachs' analysts are interested in why there's been a trend for simplification among
European companies, and point to three factors: increased shareholder engagement, a greater private equity buyer presence and a higher valuation premium for growth assets.
"Many of Europe’s highest-growth assets are arguably ‘hiding in plain sight’ within larger organisations," Goldman Sachs' analysts write.
"With growth assets’ premium rising, now may therefore be an opportune time to realise the value of these ‘hidden gems'," they add – see Goldman's charts below for an illustration of this.
In terms of which other companies could be good candidates for a bit of simplification, GS point to firms such as ABB, Rolls Royce and Vivendi as companies which fall into the category of "complexity coupled with stagnant or declining returns".

[minerve] 27/6/2018 18:30

Never heard of?

Obviously a numpty novice. But I knew that already! ;)

[wad collector] 27/6/2018 16:51

Healthy rise today . I can only find a two day old broker upgrade from a broker whom I have never heard of;
Kepler Cheuvreux 25/06
Upgrades
Reduce
Hold
975.00p

[careful] 18/6/2018 11:39

Full article in yesterdays Sunday Times.
Management seem determined to make RR. leaner and more efficient and are planning for the longer term.
Seems a long time ahead but the smaller ducted fan engine for about 2025 could be well timed.
It will be a big boost to get a slice of that huge market.

RR are a long term investment in a long term industry.

[standish11] 17/6/2018 11:11

On the plus side, the Trent XWB engine for the A350 has thus far proved to be exceptionally reliable and met or even exceeded specification in terms of fuel efficiency. GE,Safran and P & W are also continuing to experience significant problems with some of their engines which the British media choose to ignore.

[minerve] 17/6/2018 10:58

Ribble

I don't think you have missed the boat. If those FCF figures are acheived this share could easily double over the next 3-5 years IMO.

[minerve] 17/6/2018 10:44

One of my largest holdings for the last few years and starting to show the promise it had when everyone was running because of the accounting changes and profit warnings.

The FCF figures being banded around and other comments associated with this is driving the share. If those FCF figures are achieved and we have a re-rating to get us close to peer valuations this share still has plenty to offer and if some of you bought in over a year ago this should be yielding over 5% mid-term too.

My concern is the reliability and delivery of QOS on such a ramp-up and major change. Three new engines during a ramp-up could lead to problems which we are already starting to see.

[ed 123] 15/6/2018 09:39

There had been rumours in the press for 4 to 5 days about job losses of between 4,000 and 5,000. I guess it was Rolls Royce management feeling they had to come out with an rns yesterday, due to the leaks. Today's announcement set out more of the rationale and detail. The market obviously likes it .......... and why not!

[ribblewader] 15/6/2018 08:59

This is one of those I was considering as a BA. replacement. Think I missed the boat for now!

[wad collector] 15/6/2018 08:35

Wow! Strange mixture of announcements has put 120p on the share price this am. I don't get it!
Think I will gamble that the rise won't sustain in the short term .

[tlobs2] 15/6/2018 07:29

Ah it's just a modest £500M as announced this morning. Some hefty redundancy payments there then!




Edit 08:12 BOOM ! :-)

[tlobs2] 14/6/2018 18:50

Good progress on the share price today.

Any estimates as to how much these redundancies are going to cost the company in the short term? £120 - £150M or possibly more depending on the level of staff being axed?


4,600 managerial staff is one hell of a cull!

[lefrene] 14/6/2018 17:37

A useful insight Spandy83, it does sound rather similar to would be high fliers who start off in the executive stream of the Civil Service. The dead wood stays in place and by a process of attrition over time rise a position where they can do damage but are politically savvy enough to hang onto their job.

[wad collector] 14/6/2018 15:27

Well the market seems to like it anyway ; currently up 45p on the day.
RR has always struck me as a world leading company that the stock market views with some caution. Perhaps that view will slowly change.

[spandy83] 14/6/2018 07:50

I spent 10 years working at RR (no longer there). The last 4-5 of those, it was under continuous re-structuring. Even with Warren East in post. The problem has been that they've not historically planned the restructuring properly so it hasn't been effective. They've taken jobs out without thinking about what the business needs to do and how it needs to do it. Hopefully this time it is different.My worry about this restructure is fundamentally that Rolls has a real issue with glass ceilings. There's a high barrier to entry to work there, so it is filled with ambitious and intelligent people who all want to move up. Take out the career step positions and you demotivate your staff. It'll have a long term negative effect on attrition, which will affect cost.Don't get me wrong, there's fat to trim. But I'm not convinced it'll be done properly. They generally lose good people and retain the dead weight (who can't get jobs elsewhere).

[nickg100] 14/6/2018 07:23

Rolls Royce announce 4,600 job cuts saving £400 million per year generating significant profitable growth.




Middle managers and back-office staff are to bear the brunt of the cuts.

[careful] 12/6/2018 09:39

Too much sophisticated management.
Targets, value earned, endless meetings about target achievement.
There is more time spent planning the job than actually doing it.

[lefrene] 11/6/2018 16:10

The fact that they have layers of management to remove indicates that there is something wrong with their business model. Perhaps it's a civil service type structure where your salary depends on how many underlings you have? Hence you accumulate underlings just to boost your own salary?

[nickg100] 11/6/2018 09:36

Would have thought this news to be favourable for shareholders, as RR. focus on the "removal of layers of management among other efficiencies and set the company a target of generating £1bn in cash a year by 2020" (quote)

This and various other reports also confirm.....
"Speaking at Rolls’ annual results in March, Mr East said that the restructuring would likely to come in support functions for the business, adding that he “didn’t really expect any significant reduction in the skilled operational and engineering roles”.

Makes good business sense (....and perhaps slightly overdue?!)

[nickg100] 18/5/2018 14:38

Rolls Royce finally breaking the 850p barriers - The start of a bull run on RR. maybe??

Any well informed Rolls Royce shareholders here? Are we seeing just another (bullish) day at the office... ....or does the market anticipate good news from RR imminently?

[nickg100] 30/4/2018 14:44

......That was a bit of a rollercoaster ride thus far today!

Good to see Rolls-Royce trying to push north! Support appears to be strong on or around 840p the last few trading days - AGM later this week (3rd May) - Hoping this will have a positive impact on the share price?