An ultrafan model on the Rolls-Royce Holdings PLC is held on the second day of the Farnborough International Airshow in Farnborough, in the United Kingdom, on Tuesday July 23, 2024.
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The British aerospace group Rolls-Royce published stronger than expected annual profits on Thursday, has improved its mid-term directives and declared a share buyback of 1 billion pounds Sterling ($ 1.27 billion).
Rolls-Royce, which manufactures jet engines for commercial aircraft as well as electrical systems for ships and submarines, declared 2024 operating benefits of 2,46 billion pounds Sterling, beating analysts’ expectations and reflecting an increase of 57% compared to the previous year.
The company said that solid delivery in 2023 and 2024 has enabled it to achieve its mid-term objectives this year, two years ahead of the calendar, before adding that it is now expecting operating profit to increase between 3.6 billion and 3.9 billion pounds sterling in the middle of the end.
Rolls-Royce also announced a dividend of 6 pence per share, restoring payment after a five-year break, and said that an action repurchase of 1 billion pound sterling would be completed in 2025.
Citi analysts described the results of the whole year as “very strong”.
Rolls-Royce’s actions increased up to 19.4% on the news, marking a new top of the part and reaching the top of the STOXX 600 pan-European index.
“We are two years in a multi -year transformation course [and] We have made significant progress, “Helen McCabe, CFO of Rolls-Royce, in CNBC” Squawk box Europe “said on Thursday.
“It is a highlight to follow our promises to us,” said McCabe, citing the growing motor potential of the engine and improving the balance sheet.
Disturbance of the supply chain
Rolls-Royce said his profits in 2024 had been stimulated by solid performance in business aviation and by improving contract conditions.
The gains reflect the progress of the transformation of the company since the former director of BP, Tufan Erginbil, took the reins as CEO in January 2023. At the time, Erginbilgic described the company as “burning platform“It had to change the way he operated to survive.
McCabe de Rolls-Royce said Thursday that the company had welcomed the recent pledge To increase defense expenses to 2.5% of the gross domestic product (GDP) from April 2027, describing commitment as “excellent for British security”.
For the future, McCabe said that the two biggest risks for the company were the security and supply chains.
“There are two things that we are continuously worrying about the minute. Security is our job to always have security at the forefront of our mind,” said McCabe.
“And then, as you mentioned earlier, the supply chains. This causes so many disturbances throughout the industry, and it’s quite volatile,” she added.
