Rocking Rolls

12 November 2010 By Robert Cole

The UK engineer has provided convincing reassurance about the oil leaks in its troublesome Trent 900 engine. Costs are likely to be tens of millions of pounds, far lower than feared. But the risks exposed by the episode mean Rolls may struggle to regain its previous rating.

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RollsRoyce has traced the cause of the explosion on the Qantas A380 superjumbo to "a specific component in the turbine area of the engine," the UK engineer said on Nov. 12.

The faulty component, the company added: "caused an oil fire, which led to the release of the intermediate pressure turbine disc."

In an accompanying trading statement, RollsRoyce said rectification costs associated with the affair meant that underlying profit growth for the full year would be "slightly lower than previously guided."

A betterthanexpected performance from marine and noncivil aerospace divisions, it said, is also likely to make up some of the lost ground.

By 1200 GMT, RollsRoyce shares were up 4 percent to 609 pence.

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