Rolls Royce Sticks to Positive 2021 Guidance
Rolls-Royce is sticking to its guidance to turn free cash flow positive at some point during the second half of 2021, as vaccination rates accelerate and air travel demand increases.
British engineering company’s model of charging airlines for the number of hours its engines fly meant much of its income dried up last year when travel stopped. Rolls has since then cut costs, taken on debt and raised equity. It also plans to sell 2 billion pounds worth of assets to help repair its finances, and said on Thursday that there was an "encouraging range" of parties interested in buying its Spanish unit - ITP Aero (expected to go for 1.5 billion euros)
In the year to date, the company’s operational and financial performance had been in line with expectations, which could promise the return to good times after the difficult year Britain’s manufacturing giant has had. Over the first four months of 2021, Rolls-Royce said that large engine flying hours were already around 40% of pre-pandemic levels.
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