Now I can keep an eye on one of my monitored stocks which I'm currently in.

Back at 2011 levels. Triple bottom possible but don't hold your breath.

Jefferies note today (House broker):
The underlying profit warning for FY16 – likely down around 30% versus company-sourced consensus – is too great for us to believe anything else will count today. Nonetheless, FY16 cash flow is largely unchanged and some bad news on profits has probably arrived today rather than over a period of years. The equity story is dented, but still stands, in our view. If the negative sentiment quickly exhausts itself, there could be more to play for on 24 November.
Trading update in brief.
FY15 outlook is fine, albeit at the low end of guidance (so PBT nearer £1,325m versus Consensus £1,336m and JEFe £1,324m). The FY16 headwinds are now up to £650m, up from £300m at the 1H15 stage, with an additional £75-100m from Marine, £100m from Corporate/Regional, £100-150m from wide-body aftermarket.
Consensus FY16 PBT is £1,053m (JEFe £956m), so a £300-350m reduction equates to around 30%. There is also a shot across the bows on the dividend, which will be “reviewed” by the Board. That adds an air of gravity to the IMS, but against the backdrop of a “new wide-ranging restructuring programme” that targets gross cost savings of £150-200m per annum, with benefits accruing from FY17 onwards.
Trent aftermarket.
On 22 August 1991, British Airways chose GE90 engines to power its B777 aircraft. It was a dark day; darker than this one. On 15 November 1995, Singapore Airlines ordered Trent 800 engines to power its B777s and the darkness was finally banished. Today, the mist descends again as the Singapore B777s have all been retired and are probably inactive. We knew RR’s data for its installed base included such aircraft, so we knew that aftermarket revenues must have been impacted already to some degree. We believe the same applies to the Trent 500 (A340-500/600) and even to the Trent 700, albeit to a lesser extent. In our forecasts, we simply predicted these engines would steadily leave the installed base and so moderated our TotalCare revenue and EBIT forecasts accordingly. That is our context for today’s caution on the Trent aftermarket – the bad news has come forward as RR manages aircraft/engines that are on the frontier in terms of whether or not they remain in service. There may be some enduring impact on our forecasts for, say, FY18 and FY19, but we doubt it will be material. It is an unwelcome development as to timing and might appear to threaten the equity story, but that is not the case, in our view.
Marine – weak at the knees.
With hindsight, we understand that Marine was flawed in many respects – lack of new product development, too disparate, and largely based in high- cost countries – but was supported by the strength of its major end market, offshore oil & gas. We had aimed low for FY16 (EBIT breakeven), but not low enough. Yesterday, Farstad Shipping referred to pressure on rates, surplus tonnage (despite vessels being stacked) and new vessels remaining on order. We had hoped for relative stability by now, but Farstad predicted no improvement in FY16. As a result, the outlook for services remains bleak and that for new OE orders desolate. The only consolation is that RR’s FY16 cash flow guidance suggests Marine will no longer be haemorrhaging cash.
Red Line.
We harbour no illusions about what could unfold today – the scale of the downgrade for FY16 is too great to be treated with equanimity. We have, however, already set out our stall on cash flows, not profits, so the relatively robust FY16 cash flow (Consensus FCF £44m) is some solace and likewise the new management team stamping its authority on things through a more profound restructuring. Like the 6 July trading update, today we have profits down and cash much less impacted. When calm returns, that may cause the focus to shift from profits to cash flows We believe RR will live to fight another day – 24 November being a start. We believe the RR equity story is dented, but largely intact on a medium-term view."

Cynic, you think UK's economy is so robust? Then why is there so much budgets and cuts everywhere...

because it takes a great deal of pain and effort to get the country living within its means
and has little to do with the underlying state of the economy

If the state of the economy is so robust as you mentioned, there will be no job cuts, problems in the NHS, cuts in social benefits, increasing UK debt, austerity measures and so on.

Ahem...........RR thread!!!

JP Morgan Cazenove reiterates underweight on Rolls-Royce, target cut from 630p to 405p.

hyleo - harry is absolutely right .... address yourself to the TALK thread

Fred is waiting hyleo ..... enjoy

pratt witney patent gearing turbo fans more efficient. RR. buy @ £5 see broker mark downs. the BB ends

LATEST BROKER VIEWS

Date Broker New target Recomm.
16 Dec Haitong... 490.00 Neutral
15 Dec JP Morgan... N/A Underweight
9 Dec JP Morgan... N/A Underweight
4 Dec Deutsche Bank N/A Sell
25 Nov Investec 420.00 Sell
25 Nov Kepler... 470.00 Reduce
25 Nov Barclays... 680.00 Underweight
25 Nov Liberum Capital 560.00 Hold
25 Nov Panmure Gordon 500.00 Sell
25 Nov Exane BNP... 545.00 Neutral
Broker Recommendations for Rolls-Royce Group

According to reports there will be an announcement today of a big order worth £2.9 billion from Norwegian airlines

correction 1.9 billion

Some of the UK's biggest companies, including Rolls-Royce and Petrofac, have been drawn into a scandal over alleged bribery and corruption in the international oil industry. The Serious Fraud Office is understood to have teamed up with the FBI and the US Department of Justice to investigate claims that a Monaco-based lobbying firm, Unaoil, was involved in the payment of bribes to officials in Iraq, Syria, Kazakhstan, Kuwait and other oil-producing nations.

Full Year Results

Group financial highlights

· Reported revenue of £16,307m; up 6% on underlying basis, Civil Aerospace service revenues up 12%

· Underlying profit before tax up 25% to £1,071m; strong contribution from Power Systems

· Reported profit before tax of £4,897m; includes a £2.6bn non-cash profit (2016: £4.4bn loss) from the revaluation of our $38.5bn hedge book as sterling strengthened

· Free cash flow improvement driven by improved profits and good working capital management

· 2016-17 transformation programme achieved £200m run-rate savings; at top end of guidance

· €718m ITP Aero acquisition completed in December 2017, first instalment in shares (9.61m issued)



Group operational highlights

· Civil Aerospace widebody invoiced flying hours up 12%; significant in-service engine issues: in-year £170m cash cost (2016: £90m) and £227m charge to profit (2016: £98m)

· Large engine deliveries up by 35% to a record 483 (2016: 357 engines)

· Good further progress with Trent XWB-84 OE economics (cash deficit down 37%)

· Successful UltraFan Power Gearbox testing and Advance3 engine first run completed

· Strong recovery in Power Systems under new leadership; revenue growth, significant cost savings and strong cash generation

· Marine results stable year on year; restructuring benefits delivered; strategic review of Commercial Marine business underway

more.....

Down 13% at time of this post. No news at present.

Like the proverbial stone

STATEMENT re TRENT 7000. FULL YEAR GUIDANCE CONFIRMED
Rolls-Royce confirms that it expects to deliver fewer Trent 7000 engines in Q4 2018 than originally planned, reflecting early stage production ramp up challenges. As a result, we are likely to fall short of our prior engine delivery projection of approximately 550 large engine deliveries for 2018, and are now expecting to deliver approximately 500 engines.

While we regret the impact this will have on our customers, we are today re-iterating our financial guidance for 2018 profit and free cash flow as provided at the time of our interim results in August 2018.

Our priority has always been to ensure that the Trent 7000 engine meets customer expectations on entry into service and we have seen very good performance attributes during a rigorous testing phase. We continue to work very closely with Airbus and our customers on the details of the delivery schedule. While the production ramp up issues in Q4 are regrettable, such issues in the early stages of a new engine program are not uncommon in our industry. As we move into 2019 we are confident that Trent 7000 production and delivery volumes will increase significantly to meet our customer commitments.