Rolls-Royce: H1 in line; targets maintained

(CercleFinance.com) - On Tuesday Rolls-Royce confirmed its FY 2019 operating profit forecast, adding that its cash flow should improve in H2, stemming from a reduction in inventory.


The British aerospace engine group also said that it expects sales growth at its commercial aeronautics diviion and at its electrical systems subsidiary, which provides machinery for the navy and infrastructures.

In published data, the group posted H1 sales that are up 5% at 7.9 billion pounds, for an operating profit of just 83 million pounds. This compares with an operating loss of 747 million pounds in H1 2018.

The engine maker also believes that it is well placed to reach its FY targets and generate free cash flow of at least one billion pounds by 2020.

The Rolls-Royce share, which has fallen by over 25% over the past 12 months, is down about 1% on the London Stock Exchange this morning.


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