Rolls-Royce finances on track after transformation
Engineering giant RollsRoyce has said its financial performance is 'improving' as it pushes forward with its transformation plan.
The aircraft engine manufacturer said trading has been in line with expectations over the four months to April as it continues to benefit from growth in its key markets.
The group was forced to cut thousands of jobs following the heavy impact of the Covid-19 pandemic and accompanying lockdown and subsequently launched a substantial transformation programme to help reduce it’s operating costs and create efficiencies in a bid to improve profits.
Rolls-Royce – who have a site in Goodwood employing around 1,700 people told shareholders ahead of its AGM this week that the strategy is 'moving at pace'.
It said it has been 'encouraged' by early progress and expects further positive results as the year goes on.
The company said it has also been undertaking a strategic review and will reveal the findings of the review process in the second half of 2023.
This announcement came as Rolls-Royce held firm on its profit guidance for 2023.
The prestigious engineering company has said it has seen a continued improvement in flying hours by engines from its civil aerospace operation, reaching 83 per cent of 2019 levels over the first four months of 2023, in line with expectations.
Tufan Erginbilgic, chief executive, said: 'We are transforming Rolls-Royce into a high quality and competitive business with a strong balance sheet and growing profit, cash flows and returns.
'We are already benefiting from the actions we are taking as well as recovery and growth in our end markets.
'We announced several changes to the executive team in March to support the transformation, adding leaders with proven track records of delivery and high-performance.
'We are currently making good progress and our financial performance year-to-date is in line with expectations.'