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With a jump in share prices of 20 percent, they reached their highest level in more than a year. They are ahead of more than 100 shares in the leading FTSE index. Recently, they gain 24.81 percent to 1.34 pounds. MTU were also somewhat firm in their righteous way.
The British engine manufacturer has identified seven areas where it intends to make significant progress in the coming years. These include making better use of working capital, returning to a high credit rating as an obligation and, last but not least, returning distributions to shareholders.
Investors approved the continued recovery after the corona crisis, as well as the plans of the new boss Tufan Erginbilgic, wrote strategist Susannah Streeter of the investment house Hargreaves Landsdown. Erginbilgic is very focused on increasing revenue in the long term. The global brand of the group will change significantly with strategic moves.
Last year, Rolls-Royce performed well, especially in the aviation category, wrote analyst Christophe Menard from Deutsche Bank in a preliminary assessment. The targets for operating results and free cash flow this year are also encouraging. The latter is said to be between £600m and £800m, above market expectations of £420m.
Rolls-Royce with a positive attitude after difficult years
After difficult years, the engine builder is looking to the future with confidence again. In this year, operating profit on a comparable basis is expected to increase from 652 million to 800 million to 1 billion pounds (908 million to 1.14 billion euros), as the company announced on Thursday. New boss Tufan Erginbilgic announced a thorough review of all processes and costs. The goal is more efficiency, he said.
For several years, Rolls-Royce has focused exclusively on wide-body aircraft engines. The drop in air traffic and the problems faced by many airlines as a result of the pandemic hit the company harder than other engine manufacturers. Erginbilgic previously described the company as an “oil-burning factory” and admitted that Rolls-Royce had “underperformed financially for many years”.
For the full year 2022, Rolls-Royce made a loss of almost £1.3 billion after the engine maker went dark last year. The main reason for the minus was the text on derivatives. Rolls-Royce had sold several businesses, including Spanish engine manufacturer ITP Aero. Operating profit for the remaining businesses rose 57 per cent to £652 million and revenue rose 16 per cent to £12.7 billion. “Although in 2022 our performance has improved, there is still much more we can achieve,” said Erginbilgic.
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