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Rolls-Royce outlines additional costs from Trent issues

Rolls-Royce believes issues discovered during its efforts to correct Trent engine problems could create additional cash costs of £100 million ($132 million) this year.

But the manufacturer says it expects to be able to offset these extra costs through short-term actions.

Rolls-Royce says these actions are "separate to, and outside of" its newly-unveiled restructuring plans, which the company is set to detail on 15 June.

The manufacturer had disclosed earlier this year that technical issues with some Trent 1000 engines for the Boeing 787, as well as the Trent 900 for the Airbus A380, were likely to double cash costs from last year's figure of £170 million.

These issues have centred on the durability of engine blades.

Rolls-Royce has since identified similar problems affecting other models of the Trent 1000, and that these further issues could lead to additional cash costs of around £100 million for 2018.

But its decision to take "discretionary" cost-mitigation measures will effectively neutralise these higher costs, and it has left its free cash-flow guidance unchanged at £350-550 million.

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