Rolls-Royce Holdings plc AGM Statement and Trading Update (0147Z)
May 11 2023 - 2:00AM
UK Regulatory
TIDMRR.
RNS Number : 0147Z
Rolls-Royce Holdings plc
11 May 2023
11 May 2023
ROLLS-ROYCE HOLDINGS PLC AGM STATEMENT AND TRADING UPDATE
Rolls-Royce Holdings plc is holding its Annual General Meeting
today. In his address to shareholders, Chief Executive Tufan
Erginbilgic will comment:
"We are transforming Rolls-Royce into a high quality and
competitive business with a strong balance sheet and growing
profit, cash flows and returns. We are already benefitting from the
actions we are taking as well as recovery and growth in our end
markets. We announced several changes to the executive team in
March to support the transformation, adding leaders with proven
track records of delivery and high-performance. We are making good
progress and our financial performance year-to-date is in line with
expectations. I'd like to thank everyone at Rolls-Royce for their
hard work and commitment so far. I am confident that, together, we
can achieve great results."
Trading update to 30 April 2023
Our financial performance is improving reflecting positive
changes driven by our transformation programme workstreams and good
end market demand for our products and services. Supply chain
management remains a key operational challenge for us as original
equipment and aftermarket services volumes increase, especially in
Civil Aerospace. Our financial performance is in line with our
expectations at the time of the full year results on 23 February.
Our underlying operating profit guidance of GBP0.8-GBP1.0bn and
free cash flow guidance of GBP0.6-GBP0.8bn in 2023 is unchanged. We
anticipate our free cash flow generation will be seasonally
weighted in the second half of the year, as previously
indicated.
In Civil Aerospace, long term service agreement large engine
flying hours (EFH) were 83% of 2019 levels in the four months to 30
April, and on track for the 80% to 90% range for the full year, as
guided in February. Shop visit volumes and OE deliveries are also
on track with expectations. We have continued to win new business
including our biggest ever order of Trent XWB-97 engines in the
period, with an MoU for 68 engines (plus 20 options) for Air
India.
In Defence, we continued our successful run of key programme
awards with the announcement that the AUKUS submarine programme
will be powered by Rolls-Royce nuclear reactors. In the US, Bell's
V-280 Valor, powered by our AE1107F engines, cleared the protest
period, enabling our teams to progress to the next phase, with the
first aircraft due to enter into service in 2030. Bell's V-280
Valor was selected last year by the US Army's Future Long Range
Assault Aircraft programme to replace its Black Hawk
helicopters.
In Power Systems, revenue growth is being driven by demand for
aftermarket services and exceptionally high order intake in the
prior year, especially for power generation solutions. We are
getting improved pricing on new orders which will drive margins up
with the benefits expected to start showing in the second half of
the year. High order intake year-to-date included strong demand
from marine customers, including an order for Series 4000 gensets
for the U.S Navy's Constellation Class frigate programme.
Work on the transformation programme is moving at pace. Our
increased focus on efficiency and simplification is helping to keep
costs down and has already identified savings, for example the
closure of our R(2) Factory venture. We are encouraged by the early
progress of our commercial optimisation and working capital
workstreams, with positive results expected to build as the year
goes on. Our strategic review is on track and as previously
indicated, we will communicate the findings and medium term targets
in the second half of 2023.
Our Half Year 2023 results will be announced on 3 August
2023.
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
About Rolls-Royce Holdings plc
1. Rolls-Royce develops and delivers complex power and
propulsion solutions for safety-critical applications in the air,
at sea and on land. Our products and service packages enable our
customers to connect people, societies, cultures and economies
together; they meet the growing need for power generation across
multiple industries; and enable governments to equip their armed
forces with the power required to protect their citizens.
2. Rolls-Royce has customers in more than 150 countries,
comprising more than 400 airlines and leasing customers, 160 armed
forces and navies, and more than 5,000 power and nuclear customers.
We are committed to making our products compatible with net zero
carbon emissions to meet customer demand for more sustainable
solutions.
3. The annual underlying revenue was GBP12.69 billion in 2022,
and the underlying operating profit was GBP652m.
4. Rolls-Royce Holdings plc is a publicly traded company (LSE:
RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69)
www.rolls-royce.com
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