August 2, 2018 / 6:18 AM / 2 months ago

Rolls-Royce sees 2018 results at upper end of guidance

LONDON, Aug 2 (Reuters) - British engine-maker Rolls-Royce said that its 2018 results would come in at the upper half of its guidance range, after its civil aerospace and power systems businesses posted a stronger than expected first-half performance.

The upgrade to guidance comes despite the company being under pressure to fix problems with its Trent 1000 engine which powers the Boeing 787. A parts durability issue has grounded planes resulting in Rolls facing extra costs.

Rolls said in its half-year report on Thursday that it would be recognising an exceptional charge of 554 million pounds ($726 million) in respect of the Trent 1000 issues for the period to 2022.

For the full-year, Rolls said in February that its free cash flow will come in at about 450 million pounds, give or take 100 million pounds. It said on Thursday that this figure was now expected to be at the upper half of guidance.

$1 = 0.7635 pounds Reporting by Sarah Young, Editing by Paul Sandle

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