Eric Schulz, Rolls-Royce, president – civil aerospace, said: “We are proud to be selected by a valued customer such as Gulf Air and this marks a significant success for the Trent 1000”. Boeing test pilots are expected to fly the 747 in late July to experience handling the new engine prior to flying the 787 test aircraft now fitted with the first TEN engine (No. 009).
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Rolls-Royce’s share price tumbled in yesterday’s session, shedding 1.50 percent to close at 724.00p.
Rolls-Royce’s acquisition of Bilbao-based Industria de Turbo Propulsores (ITP) follows Britain’s vote in June to leave the European Union, which is causing uncertainty for businesses as they are unsure what sort of relationship the United Kingdom and the EU will have in future. Teams will take signals and information from many sources and turn it into an individual aircraft strategy that uses the least fuel, avoids disruption, and is serviced with minimum downtime.
Jefferies retained its “buy” rating on Rolls-Royce yesterday, valuing the shares at 800p, after the blue-chip engine maker said that it had inked a deal to buy the outstanding 53.1-percent shareholding in ITP, which designs and manufactures aero engine components, for €720 million (£616 million).
Singapore Airlines has agreed to serve as the lead development partner in the project. “We can see real savings when data and robust analytics are applied to support decision making in our processes and actions”.
Under the existing shareholder agreement, consideration will be settled over a two year period following completion in eight equal, evenly spaced instalments. The Financial Times quoted the analyst as pointing out that the deal could go down badly with some of Rolls-Royce investors, with the company having cut its dividend earlier this year.
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Rolls-Royce said the purchase strengthens its long-term aftermarket revenues, including from the high volume Trent 1000 and Trent XWB engines, where ITP has been a key risk and revenue sharing partner.
