Rolls-royce faces cost hit after engine issue flagged

Engineering group Rollsroyce yesterday warned that it faces a further cost hit after discovering technical issues with another fleet of its engines.

It said it had found issues with a small number of its “Package B” Trent 1000 engines, weeks after it uncovered a durability issue with hundreds of another variant of its Trent engines.

It will now carry out an inspection of the engines, which are used by Boeing, but said it is still confident of hitting financial targets for the year.

In March, the group found components were wearing out sooner than expected on up to 500 engines. It booked higher costs from bringing forward an inspection programme, but brought down its discretionary spending to keep in line with targets.

The manufacturing problems come while the company is reportedly planning to cut 4,000 jobs in a bid to streamline the business. The business is looking to cut out duplicate roles in its support and management functions.