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LONDON, May 13 (Reuters) - British engineering company
Rolls-Royce stuck to its guidance to turn free cash flow
positive at some point during the second half of 2021 as
vaccinations kick in and travellers return to the skies.
In the year to date, the company said its operational and
financial performance had been in line with expectations,
suggesting the return of some stability after a torrid 2020 for
one of the last vestiges of Britain's manufacturing industry.
Rolls' model of charging airlines for the number of hours
its engines fly meant much of its income dried up last year when
travel stopped. It has cut costs, taken on debt and raised
equity to survive.
It also plans to sell 2 billion pounds ($2.8 billion) worth
of assets to help repair its finances, and said on Thursday that
there was an "encouraging range" of parties interested in buying
its Spanish unit ITP Aero, for which it hopes to get 1.5 billion
euros.
Over the first four months of 2021, Rolls-Royce said that
large engine flying hours were around 40% of pre-pandemic
levels, in line with its expectations. Good progress was also
being made with a cost-cutting plan, the company added.
($1 = 0.7117 pounds)
(Reporting by Sarah Young; Editing by Kate Holton)
Rolls-Royce (RR.)
