This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11740915

The article has changed 8 times. There is an RSS feed of changes available.

Version 1 Version 2
Rolls-Royce profits may be hit after engine explosion Rolls-Royce says one part caused Qantas A380 blow-out
(about 2 hours later)
Rolls-Royce has said that problems with its Trent 900 engine are likely to have a "slight" impact on profit growth. Rolls-Royce has said the problem that led to a mid-air explosion of an aircraft engine was the result of a single faulty component.
The aerospace company has been investigating the explosion of an engine that forced an emergency landing of a Qantas A380 plane last week. Rolls said it was correcting the fault, which is specific to its Trent 900 engine and is not an issue on other engines.
Rolls confirmed the problem related just to its Trent 900 engine type, and was down to the failure of a "specific component" which led to an oil fire. The statement helped allay investors' concerns, with Rolls-Royce shares rising by more than 2% in early trade.
The company warned that profit growth may be "slightly lower" as a result. But Rolls added that the problems were set to hit profit growth this year.
Qantas grounded its fleet of six A380s after an engine exploded on a flight to Australia on 4 November. Key findings
Australian airline Qantas grounded its fleet of six A380s after an engine broke apart on a flight to Australia on 4 November.
The plane was forced to make an emergency landing in Singapore, and the incident forced all A380 operators to check their planes.The plane was forced to make an emergency landing in Singapore, and the incident forced all A380 operators to check their planes.
Return to service Rolls-Royce said its investigations had led "to two key conclusions".
In a trading update, Rolls-Royce allayed investors fears that the fault could be a problem with company's whole family of Trent engines. First, that only the Trent 900 was affected; second, that the engine failure "was confined to a specific component" which led to an oil fire and loss of turbine pressure.
Rolls-Royce said its investigations had led "to two key conclusions". First, that only the Trent 900 was affected; second, that the engine failure "was confined to a specific component" which led to an oil fire and loss of turbine pressure.
The company's shares fell sharply after the Qantas engine explosion, in part because of concerns about a lack of information from Rolls-Royce about the cause.
Rolls-Royce said that corrective measures would "enable our customers progressively to bring the whole fleet back into service".Rolls-Royce said that corrective measures would "enable our customers progressively to bring the whole fleet back into service".
But Sir John Rose, the company's chief executive, said: "This event and the consequent actions will have an impact on the group's financial performance this year." Profits to slow
The company's shares fell sharply immediately after the Qantas engine incident, in part because of concerns about a lack of information from Rolls-Royce about the cause.
However, following the latest update from the company, its shares were up more than 2% in morning trading.
The increase came despite Rolls' chief executive, Sir John Rose, saying that the engine problems would "have an impact on the group's financial performance this year".
In July, the company indicated that underlying profit growth for the year would be about 4%-5%.In July, the company indicated that underlying profit growth for the year would be about 4%-5%.
But this will now by "slightly lower than previously guided," Rolls-Royce's statement said. But this will now by "slightly lower than previously guided," Rolls-Royce said.
A380 delays?
Meanwhile, European planemaker Airbus, which makes the A380, said that deliveries of the aircraft may be affected by the engine problems.
"I would not rule out some impact on the delivery schedule," chief executive Tom Enders said. "I don't know how severe that would be."
But he added that he did not expect the engine incident to damage the reputation of the world's largest aircraft.
"It is not an incident that makes us or airlines happy but I am absolutely sure, given the positive reception received so far from airlines and passengers... that the reputation of the aircraft will remain untarnished and increase in years ahead," Mr Enders said.