Rolls-royce Share Discussion Threads

[careful] 14/8/2019 14:04

'glowing pieces of metal' suggest a turbine blade.

[buywell3] 14/8/2019 14:01

Market sentiment weighing on RR IMO

[jackdaw4243] 14/8/2019 13:28

standish11

Have you any idea what the problem was with the engine, it would suggest its not the fan blades .

[jackdaw4243] 12/8/2019 15:56

Well the fast moving bits were contained.

[jackdaw4243] 08/8/2019 15:17

Nice to see Directors buying

[buywell3] 07/8/2019 15:24

Plus Trent engine problems are not over yet

How much compensation will RR have to pay the likes of Boeing ?

They are going to be coming after RR for every cent they can get because their payouts are going to be in the $ BILLIONS

[buywell3] 07/8/2019 15:22

Does anyone think the pound is going to strengthen in the next 12 months ?

This is one reason why RR. will IMO be trading below 700p soon



The biggest is the hedge of $35billion (£28.8billion) required to protect its orders against currency movements.
This resulted in a charge of £861million in the first half of this year.


dyor

[jackdaw4243] 07/8/2019 14:21

Interesting

Could be worse you could be in Burford and Sirius as some are

[caradog] 07/8/2019 13:29

The difficulty in valuing the company is illustrated by:

J P MORGAN CUTS ROLLS-ROYCE PRICE TARGET TO 600 (650) PENCE - 'UNDERWEIGHT'
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GOLDMAN RAISES ROLLS-ROYCE TARGET TO 1367 (1291) PENCE - 'CONVICTION BUY LIST'
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CFRA CUTS ROLLS-ROYCE PRICE TARGET TO 820 PENCE - 'HOLD'

[careful] 07/8/2019 13:14

It is a pity that RR have to hedge because all business is priced in $.
At 35bn they are currency traders with an engineering business on the side.

RR. would have been a rich company if they had not bothered to hedge.

They are, amongst other things worried that the £ will get strong and the $ weak.
Fat chance in Boris Johnsons UK. Impossible if Corbyn gets to power.
They should have taken the risk and enjoyed the demise of the £.

Bad hedging is worse than no hedging.

[nicd] 07/8/2019 13:03

Now one of my worstBought for the lower £That came try in a bad way.

[jackdaw4243] 07/8/2019 10:34

Big numbers, lets hope .

[standish11] 07/8/2019 10:10

Alex Brummer in the Daily Mail commenting on the results:-

But there are all sorts of distortions. The biggest is the hedge of $35billion (£28.8billion) required to protect its orders against currency movements.
This resulted in a charge of £861million in the first half of this year. Strip this out and underlying profit actually climbed by 32 per cent, to £203million, on turnover up 7 per cent, to £7.35billion.
Exceptional costs, including the problems with the Trent engine, will cost the engineer £100million over the next three years.
Rolls has encouraged people to keep an eye on cash flow as a better measure of performance.
That doesn’t look too bright either, with £391million flowing out in the first half. But Rolls says this will be reversed in the current period and is sticking with guidance of £700million-plus for the second half.
What is encouraging is the order book. It delivered 257 large engines in the first half of this year and there is a wide-body order book for 2,136 more units plus the service income that comes with it.
Power Systems is going great guns and Rolls has taken a step towards meeting the climate change challenge by mopping up Siemens eAircraft enterprise.
Behind all the murk there is a growing enterprise which is seeking to climb out of financial turbulence.

[jackdaw4243] 07/8/2019 08:55

Rolls-Royce Holdings (RR.) is warning of a further £100 million loss on the Trent 1000 engine programme for the Boeing 787 Dreamliner.
The aerospace engineer yesterday maintained its forecasts for the year of producing about £700 million of cash and £700 million of operating profits, but its results for the first six months indicate that there is much to be done in the second half. Reporting that interim operating profits were 32% better at £203 million on revenues up 7% at £7.3 billion, Rolls admitted that the long-running issues with its Trent 1000 engine would cost it a further £100 million in compensation to affected airlines, such as British Airways and Norwegian Air, taking the total bill into the next decade to £1.6 billion. Source – The Time

[buywell3] 07/8/2019 08:16

Seems buywell read the results better than most here did

[wad collector] 06/8/2019 18:00

A closing price almost at a 2 yr low is a disappointing place to be when at one point it looked like the worst was behind RR. Obviously it is in the context of a weak market but this seems an unpopular share at the moment. Sitting on a small loss myself but will not lose sleep over this one.

[jackdaw4243] 06/8/2019 13:38

"Customer disruption with the Trent 1000" is a little understated.

Off wing requires a replacement and compensation for a plane that is not flying.

[buywell3] 06/8/2019 12:25

Shame that the market does not support your view

So your view is wrong ... in financial terms

Not saying you shouldn't have one .... just that it ain't any good

[standish11] 06/8/2019 09:51

From my point of view the significantly improving outlook for Free Cash Flow is a key metric. The only disappointing aspect of the interims is the slower than anticipated progress in fixing the Trent 1000 problems. Very reassuring,however,that the Trent XWB is continuing to achieve 99.9 per cent dispatch reliability.

[buywell3] 06/8/2019 07:45

Ayl306 Aug '19 - 07:24 - 3159 of 3161

Results look reassuring, all on track. Cash forecast to improve. What not to like?


buywell:


This


*Net cash excludes IFRS 16 lease liability of £2.4bn in 2019
We estimate that the net impact of IFRS 16, Leases was to increase the underlying loss after tax by £38m in H1 2019.

and this where ( ) indicates a LOSS


Earnings per share H1 2019 (48.0)p H1 2018 (51.6)p



and these one off gains might NOT be repeated in the next results unless RR sells something else

Acquisitions and disposals

In H1 2019 the disposals of Commercial Marine and Power Development were completed. The combined net proceeds were £458m. The £584m cash inflow in H1 2018 related to the disposal of the L'Orange business, previously within Power Systems.

[william7093] 06/8/2019 07:41

Good defence stock in this climate good results

[ayl30] 06/8/2019 07:24

Results look reassuring, all on track. Cash forecast to improve. What not to like?

[jackdaw4243] 05/8/2019 17:25

Good luck tomorrow.