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Rolls-Royce Holdings Plc said full-year earnings and cash flow will be at the lower end of guided ranges as it grapples with the cost of fixing Trent 1000 engines that power

Boeing Co.’s 787 Dreamliner.

Full financial analysis of expenses concerning the latest TEN version of the turbine indicates a probable one-time charge of 1.4 billion pounds ($1.8 billion) against 2019 operating profit, the London-based company said in a
statement on Thursday.

While trading has improved since the half year, Trent 1000 costs remain a challenge and the power-systems arm has also deferred some projects, with sales growth for the year now set to be in the low- to mid-single-digit range.

Rolls-Royce said in September that replacing engine components with lower-than-expected durability will delay the return of normal service for the 787 until the second quarter of next year. Dreamliner operators include British Airways, Norwegian Air Shuttle ASA and Virgin Atlantic Airways Ltd.

Rolls-Royce shares initially fell as much as 3.9% yet recovered to trade 0.9% higher at 783.20 pence as of 8:12 a.m. in London.

(Updates with share price in final paragraph.)