Markets aren't fooled by the spin given by RR9 Dec 2021 16:04
BUZZ β Rolls β Royce falls over 3% to bottom of FTSE 100 after trading update
9 December 2021 09:04e
* Shares of British engineering co down as much as 3.2% at 124.2p, biggest loser on the FTSE 100 blue-chip index
* The business is still heavily reliant on civil aviation engine flying hours and even though it is improving, it is still below its full-year target, says CMC Markets analyst Michael Hewson
* RR says its flying hours are now at 50% of 2019 levels, which is below its target of reaching 55% by the end of 2021
* Co, which has more than 400 airlines, says travel recovery remains uneven due to the pandemic
* RR expects it free cash outflow in FY21 to be better than the previous outlook of 2 bln pounds ($2.64 billion) thanks to cost cuts and a recovery in the broader market
* JP Morgan says it expects RR's 2022 free cash flow to break even, but predicts Omicron to bring downside risk to it if engine flying hours become weaker
* "While external uncertainties clearly remain, we have seen continued gradual recovery in our civil aerospace business" - Warren East, Rolls-Royce Chief Executive Officer
* Including session's losses, stock has risen 12.6% YTD, compared with a 13.7% increase in FTSE 100 ($1 = 0.7573 pounds)
Such a great bargain isn't being snapped up but sold off.