June 15, 2018 / 6:15 AM / a year ago

Rolls-Royce sticks to 2018 guidance despite rise in Trent 1000 costs

LONDON, June 15 (Reuters) - Britain’s Rolls-Royce said that problems with its Trent 1000 engine which has grounded some planes could cost it an extra 100 million pounds this year, but it was sticking to guidance as it had plans to offset those costs.

The additional details on the Trent 1000 costs came in a statement on Friday where Rolls, which makes engines for civil planes, military jets and ships, announced an ambitious plan to exceed 1 pound per share of free cash flow generation in the mid-term.

That compares to the current 15 pence per share of free cash flow it made in 2017, and will be helped by a plan announced on Thursday to save 400 million pounds a year by 2020 by cutting 4,600 jobs.

Reporting by Sarah Young; editing by Kate Holton

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