Britain’s Rolls-Royce said It expected a significant improvement in cash generation in the second half, driven by improved trade in the power systems and civil aerospace sectors after a cash outflow of £ 429 million (521 million dollars) in the first half.
The aero-engine manufacturer said on Tuesday that it has made good progress in fixing problems with Trent 1000 engines, although customers have been disrupted.
On Tuesday, Chief Executive Warren East said, “We expect a significant improvement in cash in the second half as we unwind inventory built up to support customer deliveries and benefit from improved trading in both.
The company, which is being restructured by Chief Executive Officer Warren East, is planning an underlying profit and free cash flow of £ 700 million, plus or minus £ 100 million, and at least 1 billion pounds in free cash flow in 2020.
Rolls-Royce realizes an initial loss on the delivery of its civil aerospace engines, which power aircraft such as the Airbus A350 and A330neo, and aims to make a long-term profit by including maintenance contracts.
It delivered 257 large civil aerospace engines in half, said the group, which has made good progress in reducing average losses of large engines, from 200,000 pounds to 1.3 million pounds.
First half revenue increased 7 percent to 7.35 billion pounds and operating profit 32 percent to 203 million pounds, the company said.
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20 September, 2019