We Lower Rolls-Royce's FVE on the Back of a Slower-Than-Expected Recovery

Rolls-Royce entered the coronavirus pandemic in a weak position relative to peers as it was addressing major issues related to its Trent 1000 engine. The group’s civil aerospace segment, which supplies and services engines for the wide-body market, was particularly hard-hit as a result of the drop in demand for new aircraft and a sharp decrease in flight hours for its in service fleet--which is the core driver of group profits. The group responded with a cost-restructuring program, a GBP 2 billion rights issue, and the disposal of assets expected to bring in an additional GBP 2 billion.