By Ian Walker
Rolls-Royce Holdings said Thursday that its financial performance for the year to date is in line with expectations and that the strategic review is on track.
The British aerospace and defense company, which launched a review of the business earlier this year, said that long term service agreement large engine flying hours in civil aerospace were 83% of 2019 levels in the four months ended April 30 and are on track for the 80%-90% full year target, as guided in February.
It added that power systems revenue growth is being driven by demand for aftermarket services and exceptionally high order intake in the prior year, especially for power generation solutions.
The company backed its guidance for operating profit of 0.8 billion pounds to GBP1.0 billion ($1.01 billion to $1.26 billion) and free cash flow of GBP0.6 billion to GBP0.8 billion this year. As previously guided, free cash flow generation is expected to be weighted toward the second half of the year, it said.
In February the company said that work conducted as part of its strategic review and transformation program showed that there was significant scope for materially higher profit, cash flows and returns.
It plans to announce findings of the review, together with medium term targets, in the second half of this year.
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