Roll Royce reported on Thursday its half-year earnings which sent its shares down 11.29% despite a mounting recovery in travel, meaning the jet engine maker expects to hit its full-year financial targets.
The company stated it reported another record quarter in Q2 for order intake in power systems as well as growth in revenue and cash flow.
Rolls Royce is struggling to ‘drive’ forward.
Underlying revenue came in at £5.3 billion from £5.2 billion in the previous year. Meanwhile, operating profit tumbled to £125 million from £307 million. Underlying profit margins were lower in the first half but are expected to improve in the second half.
“We have progressed well in the first half of the year, with more than a £1bn improvement in free cash flow, strong order intake in Power Systems, increased engine flying hours and commercial discipline in Civil Aerospace, and targeted investment to support longer-term growth in Defence and New Markets,” said Warren East, Chief Executive.
East also stated the company is actively “managing the impacts” of the current economic challenges, such as rising inflation and supply chain disruptions.
Furthermore, the company’s financial guidance is unchanged. The jet engine maker still expects low-to-mid-single digit revenue growth and modestly positive free cash flow in 2022.
Rolls Royce’s share price has plunged 11.29% so far on Thursday.