Rolls-Royce issues interim management statement

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By TESTCustomwebLP TESTCustomwebLP May 8, 2015 11:53

Rolls-Royce issues interim management statement

Rolls-Royce has maintained its full year guidance for 2015. The aero engine manufacturer has stated that it expects performance to be more weighted towards the second half, while deliveries of Trent XWB engines will ramp up.

Rolls-Royce said that on cash, it expects a first-half bias in the cash cost of its restructuring efforts, with the benefits of restructuring beginning to be seen later in the year. It therefore also expects free cash flow to be more weighted towards the second half than in 2014.

The 2015 guidance excluded the effects of foreign exchange translation. Compared with 2014, average rates for Sterling have weakened against the US dollar but strengthened against the Euro and the Norwegian Kroner. If rates remain at the average levels seen so far in 2015, these movements would be broadly offsetting for earnings, says Rolls-Royce. However for revenue, the company expects a roughly £350 million reduction from translation.

Rolls-Royce announced last November that it would reduce its headcount by 2,600, principally in the Aerospace division. Today, the company has stated that it is on track to deliver this plan and to date approximately 1,300 people have left the company.

In Aerospace, Rolls-Royce announced its largest ever order, with Emirates selecting the Trent 900 engines to power 50 Airbus A380 aircraft. Air China also announced that it had selected Rolls-Royce Trent 1000 engines and long-term TotalCare support to power 15 new Boeing 787-9 Dreamliner aircraft.

Rolls-Royce will report Interim Results on 30 July 2015.

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By TESTCustomwebLP TESTCustomwebLP May 8, 2015 11:53