(Reuters) - Aerospace supplier Melrose Industries (LON:MRON) said on Tuesday it faces a potential cash impact of around 200 million pounds ($250.32 million) over the period to 2026 after Pratt & Whitney parent RTX Corp warned of grounding of some engine variants for quality checks.
RTX's warning on Monday of a one-time grounding any time in coming years comes after the company in July said a rare powder metal defect could lead to the cracking of some engine components.
RTX now estimates it would have to pull a total of 600 to 700 engines off its Airbus A320neo jets for lengthy quality inspections between 2023 and 2026.
Melrose said its GKN (LON:GKN) Aerospace unit has a 4% programme share on the engine variant impacted by the issue, adding that the full potential cash impact was on the basis of the assumption that this was all a programme cost.
The London-listed Melrose said there was no change to its profit and balance sheet guidance, and that the share buyback programme announced last week would proceed as planned.
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