sauloman
01 Nov 2016
new orders Perhaps when we leave the eu we can bribe people and raise the orders again as there will be less constrain on what we can or can-not do. I am sorry but business is a cut throat world.
MoleMan99
01 Nov 2016
Re: new orders I would agree with people who say Rolls has to pay bribes because everyone else does, but Rolls have got caught big time and now have to act really clean while the investigation deepens.The net effect will be less contract wins.
JoseFrio
27 Oct 2016
Re: new orders There have been no significant new orders for the exclusively-RR powered A330neo or A350 since Farnborough. Boeing has sold some 787s this month to Qatar and China Southern. Neither order specified engines but both already operate GE-powered 787s.I wouldn't worry though. Airbus hit major production problems on the A350 which has damaged sales. However the order backlog represents several years production. The delayed entry into service of the fleet will be harming RR's revenues, but the worst is behind Airbus and this week they announced that they will greatly increase delivery rates starting now. The A330neo also has a large order backlog and plenty more orders will come.
sauloman
26 Oct 2016
new orders have not heard of Rolls Royce receiving new orders for a while have i missed something. There is always an announcement on the news. Can someone enlighten me.
Hydrogen Economy
26 Oct 2016
Re: Telegraph -RR developing more effici... Eadwig"I wouldn't place too much emphasis on efficiency in terms of driving the share price"Certainly not in the short term, although a bit more business efficiency might help. However as LKH often reminds us, no-one knows what price oil will be years down the line so it would be remiss of aero engine manufacturers to ignore efficiency. Even if ATK stays cheap there would be benefits to airlines in terms of weight of fuel needed Vs freight/passengers or range. Doncaster/Sheffield Airport, by 'eck South Yorkshire reaches t'20th Century (that wouldn't be Finningley by any chance? Spend a few happy days there at air-displays as a lad, them Vulcans was loud!)H2
Eadwig
25 Oct 2016
Re: Telegraph -RR developing more efficient ... I wouldn't place too much emphasis on efficiency in terms of driving the share price.Of course, a company like RR should always be looking to improve quality and efficiency, but the drop in oil prices over the last few years has shown how many airlines are prepared to hire relatively inefficient older, second hand planes rather than invest in the latest and most efficient technology.It amazes me that you still see some airlines that haven't added winglets to their fleet - the latest design reduces fuel consumption by 5% on some planes - yet you see those same planes with or without winglets, depending on the carrier.Airlines obviously have different ideas about cost efficiencies than most of us when it comes to their business models.PS. For the first time ever in the Heathrow expansion debate, I just heard someone on the BBC news mention Doncaster Sheffield airport. It has a runway that can take any jet in the world, is surrounded by the least used motorway infrastructure in the country and has literally about 4 - 12 flights in and out a day, depending on the time of year. Living in Yorkshire, Heathrow is such a hassle to get to, I use Amsterdam as my hub.How many slots could be freed up at Heathrow by moving them to regional airports that have masses of capacity? How serious is the government about the 'Northern Powerhouse' when, as far as I know, no one has ever looked at that option? How many people travelling south from the north are forced to in order to get an international flight where they only have the option of Heathrow or Gatwick (which is even further south and harder to get to).How long does it take to get to Heathrow if you live in North London? A small extension to the East coast mainline would link North London to Doncaster airport, allowing for a couple of stops on the way, in less than 80 minutes. Then a much quicker time to get onto your flight once there.The whole Heathrow second, now third, and fourth to come, runway debates highlight a dangerous lack of foresight in the UK. Competing in the global economy increasingly revolves around major urban centres with good communications. Britain needs more than one, in my humble opinion.Sorry about that - it just came on the radio when I was posting about efficiencies.
Jerb44
24 Oct 2016
Re: Telegraph -RR developing more efficient ... Don't hold your breath. Gearboxes are notoriously difficult to get right. The oil cooler will be impressively large I would imagine.
Hydrogen Economy
24 Oct 2016
Telegraph -RR developing more efficient engine Good to see RR keeping focus on development. Efficiency is going to be the big driver on future sales so hopefully RR can take a lead in this without taking any undue risks. Currently there are single shaft engines, fan compressor) and recovery/power turbines at same speed and twin shaft (used for mechanical drives for uses like process compressors) where there is no linkage between fan and power turbine, allowing variable speed drive. This is an interesting hybrid concept. Integrating high speed gearboxes into the confines and operating conditions of as aero-engine sound like a tough engineering challenge, but current engines are full of such challenges which have been solved, hopefully RR will be ones to both deliver and make a commercial success of this one. RR's SP recovery will take time. Evidence that the know-how RR undoubtedly have, is driving improved products will help that process. H2[link] has taken a step forward in developing more powerful and efficient jet engines for commercial passenger aircraft with successful tests of a vital component for its UltraFan design.The company has started tests of a “powered gearbox” linking the turbine at the back of the engine with the giant fan at the front.Traditionally these parts are directly linked, meaning the speed of the fan, which produces the majority of the thrust of a modern jet engine, is directly controlled by the turbine, which is driven by hot gases being forced out of the back of the engine.As fans become bigger to generate more power, the turbines at the back have to become larger and heavier so they can drive the fans at the front, with the turbines eventually becoming so large that they eliminate the gains of a bigger fan.To give an idea of how large fans have become, the Rolls-built engines for Airbus’s latest A350XWB passenger jet are bigger in diameter than Concorde’s fuselage.Rolls’s UltraFan design gets around the problem of a large fan by using a gearbox between the fan and the turbine. This means the turbine can spin at high speeds, where it is more efficient, while the gearing ensures the fan can turn at the lower speeds where it performs best.The powered gearbox is designed to handle loads of 100,000hp, the equivalent power output of 1,000 family cars, and is a first for Rolls.The company hopes the gearbox will allow the fan and turbine each to spin at optimum speed for whatever part of the flight an aircraft is in, be it take-off, cruise, climb or landing, cutting fuel consumption.The tests that the gearbox is undergoing at Rolls-Royce as the company prepares to run it up to full power place it on a rig which simulates the engine in different positions such as steep climbs and turns, as would be experienced in flight.Mike Whitehead, Rolls-Royce’s chief engineer on the UltraFan, said: “This is a significant step in bringing our future technology to life. “We launched the UltraFan design in 2014 and now we are putting our new infrastructure to work to turn it into reality.”Using gearboxes to produce more efficient jet engines is not a new idea but few companies have been able to successfully implement them. The American jet engine manufacturer Pratt & Whitney’s geared turbofans have suffered technical issues, causing delays for the small Airbus A320 jets they are being fitted to, and no company has yet delivered a geared turbofan engine for larger jets, the market that Rolls-Royce is focused on with its engines.
II Editor
17 Oct 2016
NEW ARTICLE: Chart of the week: A stunning trade setup "Rolls Royce presents a textbook tradeI last covered LSE:RR.:Rolls-Royce on 25 July when the shares were in a move that I believed was a pure counter-trend bear market rally. That means I expected the rally to fizzle out at some point and the ..."[link]
nk1999
15 Oct 2016
Jefferies From Citywire:"Jefferies raises Rolls Royce target price The equity story around aircraft engine manufacturer Rolls Royce (RR) has ‘stabilised’ and it will be in a better place in 12 months, according to Jefferies. Analyst Sandy Morris retained his ‘buy’ recommendation and increased the target price from 800p to 900p.‘We believe the Rolls Royce story has stabilised,’ he said. ‘We nudge up our forecasts for profits and free cash flow and raise our target price from 800p to 900p.‘We believe Rolls Royce is embarking on a frenetic next 12 months. We venture that ups and downs along the way are inevitable. Rolls Royce should emerge in a much better place, in our view, hence the increase in our price target,’ he said.The shares shed 5p to close 0.7% down at 748.8p."
MoleMan99
12 Oct 2016
Re: Hedging It is what I thought when I was buying before the trading statement that revealed the truth.Their hedging book is massive and will take several years to unwind the unfavourable contracts. I expect them to of sorted it just in time for sterling to recover, so they will never benefit from the low rate.I got really angry about it as this seemed to be a surprise to the management. One RNS warned they would make more profit because of the declining sterling, then the next RNS pointed out the hedge book would create a big loss for the company to absorb.
Hyperproject
11 Oct 2016
UK Engineering My last post was in July, when I was in was adamant about the health and prospects of UK engineering manufacturing, quoting Rolls Royce, Spirax Sarco and Renishaw as great investments, my gains to date are: 69%, 76% and 87% respectively.....not just "nut and bolts".
Jerb44
11 Oct 2016
Re: Engine problems Its probably cracks starting from corrosion pits. If the crack propagation is driven by lots of cycles.....
nk1999
10 Oct 2016
Re: Hedging Wouldn't the hedging losses be offset by the increased revenue? I thought that was the basic purpose of hedging (to protect against variations up or down)?Further, while hedging will be for a limited period, possibly the fall of the Pound may be more permanent, or at least for longer?
MoleMan99
10 Oct 2016
Hedging Looking at the SP rise, I think the market has forgotten that as the pounds falls, they should in theory make more, but the massive hedging book will lead to more losses?
