StockMarketWire.com - Engine maker Rolls-Royce said it expected its profit and cash flow for 2018 to be at the upper end of its previous guidance.

Operating profit was expected at the top of a £400m plus or minus £100m range, while core operating profit would be at the top end of a £450m plus or minus £100m range.

Free cash flow would be at the top of a £450m plus or minus £100m range.

Rolls-Royce said its restructuring remained on target, with around a third of 4,600 job cuts expected to take place before the end of this year.

The disposal process of the commercial marine business was proceeding to plan, with completion expected towards the end of the 2019 first quarter.

'We expect net proceeds of around £350m to £400m dependent upon the final outturn working capital on completion,' Rolls-Royce said.

In the commercial aerospace division, Rolls-Royce said 'work continued to progress well' with regulatory authorities on the certification of newly-designed intermediate pressure compressor blades for the Trent 1000 Package C engines.

'Once certified, this new design of blade can then be fitted to Package C engines as they come in for overhaul, helping to reduce the current customer disruption on this engine variant,' it added.

'Despite significantly increasing our Trent 1000 related maintenance, repair and overhaul capacity over the last twelve months, the number of aircraft on ground remains at a high level.'

'We sincerely regret the disruption that this has caused our customers.'

'We are determined and confident that as we execute our plans we will see a significant improvement in aircraft on ground as we progress through the first half of 2019.'

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