TIDMRR.
RNS Number : 8321M
Rolls-Royce Holdings plc
26 January 2021
26 January 2021
ROLLS-ROYCE HOLDINGS PLC TRADING UPDATE
This update addresses our full year 2020 outturn, subject to
audit, and our initial expectations for 2021 considering
developments in the COVID-19 pandemic.
Trading in December was broadly in line with expectations across
all business units and we delivered good progress on our
restructuring programme. Full year 2020 Group free cash outflow was
in line with previous guidance, and in-year cash cost savings of
more than GBP1 billion were achieved from our mitigating actions.
Year-end liquidity was approximately GBP9 billion, at the upper end
of the previously guided range.
Continued progress on vaccination programmes is encouraging for
the medium-term recovery of air traffic and economic activity. In
the near-term, however, more contagious variants of the virus are
creating additional uncertainty. Enhanced restrictions are delaying
the recovery of long-haul travel over the coming months compared to
our prior expectations, placing further financial pressure on our
customers and the wider aviation industry, all of which are
impacting our own cash flows in 2021.
In this environment, financial forecasts remain highly sensitive
to changes in external conditions and, while we are continuing to
drive cost reduction, our current forecasts indicate a free cash
outflow in the region of GBP2 billion in 2021. This is based on
2021 widebody engine flying hours at around 55% of 2019 levels
(compared to the base case of 70% presented on 01 October 2020).
Though significant uncertainty remains over the precise shape and
timing of the recovery in air traffic and the phasing of engine
(OE) concession payments, free cash outflow this year is forecast
to be heavily weighted towards the first six months. We continue to
expect to turn cash flow positive at some point during the second
half, reflecting our forecasted profile of flying hours as they
recover from today's low base.
With liquidity of approximately GBP9 billion, we are confident
that despite the more challenging near-term market conditions we
are well-positioned for the future. We remain focused on completing
our restructuring programme and footprint consolidation as well as
maintaining cost control and capital discipline. During 2020 we
removed around 7,000 roles, making good progress towards our target
to remove at least 9,000 roles by the end of 2022. This
restructuring will be a key enabler of our target to deliver at
least GBP750 million of free cash flow (excluding disposals) as
early as 2022, contingent on the expected recovery in engine flying
hours.
Our 2020 Full Year results announcement will be published on 11
March 2021.
For further information, please contact:
Media
Richard Wray
Director of External Communications & Brand, Rolls-Royce
plc
Tel +44 (0) 7810 850055
Richard.Wray@Rolls-Royce.com
Investors
Isabel Green
Head of Investor Relations, Rolls-Royce plc
Tel +44 (0) 7880 160976
Isabel.Green@Rolls-Royce.com
www.Rolls-Royce.com
About Rolls-Royce Holdings plc
1. Rolls-Royce pioneers cutting-edge technologies that deliver
clean, safe and competitive solutions to meet our planet's vital
power needs.
2. Rolls-Royce has customers in more than 150 countries,
comprising more than 400 airlines and leasing customers, 160 armed
forces, 70 navies, and more than 5,000 power and nuclear
customers.
3. Annual underlying revenue was GBP15.45 billion in 2019,
around half of which came from the provision of aftermarket
services.
4. In 2019, Rolls-Royce invested GBP1.46 billion on research and
development. We also support a global network of 29 University
Technology Centres, which position Rolls-Royce engineers at the
forefront of scientific research.
5. Rolls-Royce Holdings plc LEI: 213800EC7997ZBLZJH69
Note on forward-looking statements
This press release may contain projections and forward-looking
statements. The words "believe", "expect", "anticipate", "intend"
and "plan" and similar expressions identify forward-looking
statements. All statements other than statements of historical
facts included in this press release, including, without
limitation, those regarding the Company's financial position,
potential business strategy, potential plans and potential
objectives, are forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the Company's actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding the Company's present and
future business strategies and the environment in which the Company
will operate in the future. Further, certain forward-looking
statements are based upon assumptions of future events which may
not prove to be accurate. The forward-looking statements in this
press release speak only as at the date of this press release and
the Company assumes no obligation to update or provide any
additional information in relation to such forward-looking
statements.
The merits or suitability of investing in any securities
previously issued or issued in future by the Company for any
investor's particular situation should be independently determined
by such investor. Any such determination should involve, inter
alia, an assessment of the legal, tax, accounting, regulatory,
financial, credit and other related aspects of the transaction in
question.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFIALRIEFIL
(END) Dow Jones Newswires
January 26, 2021 02:00 ET (07:00 GMT)
Grafico Azioni Rolls-royce (LSE:RR.)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Rolls-royce (LSE:RR.)
Storico
Da Mar 2023 a Mar 2024