Rolls-Royce, which has been exposed to the travel restrictions in the aviation industry and especial13 May 2022 08:16
Rolls-Royce, which has been exposed to the travel restrictions in the aviation industry and especially in long-haul, for which it supplies engines for Airbus and Boeing, turned a small profit in 2021 after a £4 billion loss in 2020.
“We’re confident we have positioned the business to achieve positive profit and cash this year, driven by the benefits of our cost reductions and increased engine flying hours,” East, who will leave Rolls-Royce when a replacement is found, said.
The flying hours of passenger planes running on Rolls-Royce’s Trent engines, typically the Airbus A350 and Boeing 787, are up 42 per cent year on year.
Of the financial prospects for the Derby-based civil aviation business, which in normal times accounts for well over half the group, East said: “We expect underlying revenue to grow at a low double-digit percentage compound average growth rate from 2021 with an operating margin percentage in the high single digits, and with trading cashflow comfortably exceeding operating profit.”