|Bid||705.80 x 0|
|Ask||706.60 x 0|
|Day's Range||697.00 - 715.80|
|52 Week Range||679.80 - 1,003.50|
|Beta (3Y Monthly)||0.62|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb. 28, 2020|
|Forward Dividend & Yield||0.12 (1.69%)|
|1y Target Est||974.81|
(Bloomberg Opinion) -- Say what you like about outspoken activist hedge fund investors such as Carl Icahn, Bill Ackman, Paul Singer or Dan Loeb but at least you know where they stand. Nowadays it’s more fashionable for activist funds to refrain from public criticism and work constructively behind the scenes to help managers turn around a business.This is fine, but it becomes a problem when one of the “kindly” investor types resigns abruptly from a board seat they’d pushed to obtain, without providing much explanation. Shares in Rolls-Royce Holdings Plc tumbled as much as 5% on Tuesday when Bradley Singer, a representative of Jeffrey Ubben’s ValueAct Capital, said he has stepped down as a director. ValueAct is the British aircraft engine maker’s largest shareholder.After serving almost four years on the board, Singer said the company was now on a “solid path forward.” His praise rang a little hollow, however, because Rolls-Royce’s shares are close to three-year lows. ValueAct didn’t help matters by failing to clarify whether it plans to keep its stake of about 9%.Singer’s departure may in fact signal that there are limits to what activist investors can achieve, even the ones who ask politely.In fairness, Rolls-Royce is a different company to the one ValueAct bought into. Under chief executive Warren East, it has cut costs, slashed jobs and overhauled a famously bureaucratic culture. The company has ramped up production and reduced upfront losses on engine sales (engine makers typically make money in servicing, not selling the equipment). Its struggling commercial marine business has been sold. Mission accomplished? Hardly. Because of engineering problems involving the Trent engines it supplies for Boeing Co.’s 787 Dreamliner, Rolls-Royce is a long way from being “fixed.” The company will have spent 2.4 billion pounds ($3.2 billion) between 2017 and 2023 dealing with the early deterioration of engine blades, a cash outflow the debt-laden manufacturer can ill afford. Standard & Poors cut its long-term credit rating last month to BBB-, one notch above junk.Fixing the Trent engines is partly a logistics issue — making sure customers are inconvenienced as little as possible while their planes are grounded for repairs. But it’s also an engineering challenge: Rolls-Royce designed a new high-pressure turbine blade for the Trent 1000 TEN engine variant only to discover that it didn’t provide the necessary durability.Getting this right is something Singer, a former Goldman Sachs Group Inc. banker and finance director of Discovery Communications Inc., would have had relatively little influence over. Yet after attending scores of board meetings, he should at least have been well-versed in what is ailing Rolls-Royce. His decision to step away isn’t reassuring.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
British engineering company Rolls-Royce said Bradley Singer, a representative of its largest shareholder the activist investor ValueAct Capital, has resigned from its board, weakening the stock. Rolls-Royce said on Tuesday that Singer, chief operating officer of ValueAct, left on December 9 after nearly four years as a non-executive director. ValueAct owns a 9.35% stake in Rolls-Royce according to Thomson Reuters data.
(Bloomberg) -- Rolls-Royce Holdings Plc is pitching nuclear reactors as the most effective way of powering the production of carbon-neutral synthetic aviation fuel without draining global electricity grids.Drawing on technology developed for nuclear-powered submarines, the small modular reactors or SMRs could be located at individual plants to generate the large amounts of electricity needed to secure the hydrogen used in the process, according to Chief Executive Officer Warren East.Synthetics and biofuels are likely to become the mainstay of aviation in coming decades, East said, providing liquid propellants for the next generation of aero-engines before the advent of all-electric alternatives. Reactors that could power the hydrogen extraction are small enough to be transported by truck and would occupy a building one-10th the size of a nuclear power station.An SMR attached to a synthetic fuel plant would “provide a very competitive solution,” East said in a briefing at the Aviation Club in London. Electricity costs would be 30% lower than for a large nuclear facility, matching wind power, with the modular approach allowing parts to be made on a factory production line.So-called electrofuels are synthesized using carbon dioxide or carbon monoxide captured from sources such as cement production, together with hydrogen derived from water via electrolysis, itself powered by sustainable electricity sources such as wind, solar or nuclear. In the future, direct carbon capture from the atmosphere could sever any link with fossil sources.London-based Rolls-Royce, Europe’s biggest maker of jetliner engines, would partner with a petrochemical specialist or alternative-energy startup to develop the technology, East said.The proposals face significant obstacles, including widespread public concern about radiation leaks and the safe disposal of nuclear waste, as well as question marks over U.K. plans to revive the sector after Hitachi Ltd. and Toshiba Corp. withdrew from major projects.Rolls aims to minimize regulatory barriers by building an initial network of 16 SMRs on the sites of former U.K. nuclear power stations still approved for atomic use.The plants, costing 1.8 billion pounds ($2.4 billion) apiece, would feed the national grid and come online from the 2030s, with all complete by 2050. (Updates with proposed rollout plan in final two paragraphs.)To contact the reporter on this story: Christopher Jasper in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Andrew Noël, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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Virgin Atlantic continues to struggle with reliability issues on Boeing 787 aircraft but expects to have its major troubles with Rolls-Royce engines resolved by year-end, the airline's CEO said in an interview in London. Virgin Atlantic CEO Shai Weiss was more diplomatic in comments about Rolls-Royce than Emirates President Tim Clark, who earlier in the […]
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Indian federal police have opened an investigation into Rolls-Royce Holdings Plc , alleging the UK-based engine maker and its Indian arm improperly used a third-party to conduct business with three Indian state-owned companies. In a report published on Tuesday, India's Central Bureau of Investigation (CBI) also said officials from the Indian companies - Hindustan Aeronautics Limited (HAL), ONGC and GAIL - may have been involved in improper procurement from Rolls-Royce. Rolls-Royce provided engine spare parts to HAL for servicing gas turbines used by GAIL and ONGC, both of which are involved in the oil and gas sector, the report said.
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Turkish aerospace manufacturer Kale Group said on Monday if disagreements between Ankara and Washington curb parts orders and exclude it from an F-35 project, then any lost sales would be offset by turning to civil aviation. Turkish President Tayyip Erdogan has not backed down from the planned purchase of a Russian S-400 missile defense system that the United States has said would compromise the security of stealth F-35 fighter jets, which Turkey also plans to buy. NATO ally Turkey has said it will take delivery of the S-400s in July, even while sources told Reuters earlier this month that Washington had halted delivery of F-35-related equipment to the country, marking the first concrete U.S. step to block its delivery.
A shipyard in Barrow-in-Furness, northwest England, that builds Britain's new generation of nuclear submarines reopened on Wednesday after being briefly evacuated due to an incident, defense company BAE Systems said. "Following an extensive sweep of the Devonshire Dock Complex (DDC), including the four Astute class submarines in build, nothing suspicious was found," the company said in a statement. It did not specify the nature of the incident but an unidentified source told The Mail, a publication based in Barrow-in-Furness, that the evacuation followed a warning about a bomb on one of the Astute-class submarines.
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According to Rolls-Royce, by late February 35 787s had been grounded globally due to engine blades corroding or cracking prematurely. "This blade deterioration is a known issue but it is occurring faster than we expected on some engines," Chris Cholerton, Rolls-Royce President for Civil Aerospace, said on Wednesday. The accelerated inspection regime will allow Rolls-Royce to confirm the health of the more than 180 engines in service over the next few months.
Dunelm Group Plc rose more than 3 percent as the homewares retailer said it expected to top analysts forecasts for full-year profit after surging online demand helped it ride out a tough British retail environment in the latest quarterly report. Shares of ASOS climbed after the British online fashion retailer stuck to its full year guidance for sales, profit margins and capital expenditure despite a plunge in first-half pretax profit.
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BRUSSELS/PARIS, April 9 (Reuters) - The European Union has begun preparations to retaliate over Boeing subsidies, an EU official said on Tuesday, a day after Washington listed EU products it plans to hit with tariffs in their aircraft dispute. The U.S. Trade Representative https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/april/ustr-proposes-products-tariff on Monday proposed a range of EU products ranging from large commercial aircraft and parts to dairy products and wine to target as retaliation for subsidies given to Airbus. A European Commission source said on Tuesday the level of proposed U.S. countermeasures was "greatly exaggerated," adding the amount of retaliation could only be determined by a World Trade Organization arbitrator.
Britain's FTSE 100 lost ground as the U.S. and European Union exchanged tariff threats, the IMF cut global growth forecasts and oil majors slipped after Russia signaled an output boost, while investors awaited fresh Brexit updates. The FTSE 250 slid by the same amount.
London's main share index lost ground on Tuesday as Rolls Royce weakened after the U.S. proposed a list of EU goods for retaliatory tariffs, while investors awaited updates on a postponement of Britain's exit from the EU. The FTSE 100 was down 0.2 percent with losses across the board and the FTSE 250 was down 0.1 percent at 0725 GMT. Rolls Royce gave up 1.1 percent after the U.S. Trade Representative Robert Lighthizer announced a proposal to impose tariffs on a list of European Union products as retaliation for EU aircraft building subsidies.