The London-based company is on track to meet its 2020 goals
The shares in Rolls Royce jumped around 10 per cent in early trading today after the British engine-maker reported a return to profit in 2017 and also pledged to deepen restructuring efforts.
The London-based company reported a jump in pre-tax profits to £4.9bn in the year to the end of December 2017, beating all expectations. Underlying profits jumped by 25 per cent to £1.07bn and revenue rose from £13.8bn to £15.1bn.
The group said that its 2018 results would be impacted by costs related to carrying out repairs on some aero-engines, but it remained on track to generate free cash flow of £1bn by 2020.
Meanwhile, Chief Executive Officer Warren East said that said the company has hired consultants Alvarez & Marsal to help develop a “considerably simplified staff structure.”
East said the latest restructuring effort will aim to eliminate remaining duplication within management. He declined to say how many jobs will be affected, though the focus will be on white-collar staff rather than engineers and technicians.
“The reality is that there is more simplification that we need to do to make ourselves truly competitive,” he added.
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