Rolls-Royce Holdings is today holding its Annual General Meeting in Derby.
In his comments to shareholders, Chief Executive Warren East will note: “I am pleased to report that the year has started well and that trading is in line with our expectations.
“We continue to make significant progress with our simplification programme; we have slimmed down the Group to three divisions from the previous five and we are making good progress with the diagnostic phase of the restructuring programme that we announced in January, the results of which will be shared in June.
“We have also announced the sale of the L’Orange fuel injector business. These are all meaningful steps as Rolls-Royce continues its ambition to deliver its full potential, both operationally and financially.
“In April we gave a further update on the Trent 1000 in-service performance issues that we noted in our full year results for 2017. The most recent update noted the need for an accelerated inspection programme on the Package C engine fleet.
“Roughly two-thirds of the initial programme of accelerated inspections has now been completed, with the remainder of initial inspections scheduled to take place within the next six weeks, in accordance with the guidance issued by our regulatory authorities. We sincerely regret any disruption these inspections may cause and we continue to work closely with Boeing, our customers and the regulatory authorities to minimise this.
“In addition to mobilising specialist teams to support these inspections across the globe we have also made significant progress in identifying and developing additional MRO capacity which will enable us to return those engines requiring maintenance more rapidly to our customers.
“While the requirement for more regular inspections will lead to higher than previously guided cash costs, in response to this we have reprioritised various items of discretionary spend to mitigate these incremental cash costs. Accordingly, we are maintaining our profit and cash expectations for 2018.”