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Rolls-Royce lifts outlook again as demand soars for engines
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The Business Times
It earned more from selling engines for widebody planes, military hardware and artificial intelligenceThe company expects adjusted operating profit of £4.7 billion (US$5.37 billion) to £4.9 billion and free cash flow of as much as £4 billion.
PHOTO: ROLLS ROYCE[LONDON] Rolls-Royce Holdings raised its full-year guidance for a second time as the UK’s largest manufacturer earned more from selling engines for widebody planes, military hardware and artificial intelligence.
The company expects adjusted operating profit of £4.7 billion (US$5.37 billion) to £4.9 billion and free cash flow of as much as £4 billion, Rolls-Royce said in a statement on Thursday (Jul 30).
The new guidance for free cash flow compares with a previous top-end of as much as £3.8 billion.
Rolls-Royce has said that its cash guidance also includes an outflow of as much as £200 million tied to supply chain issues, which it said would be gone “by the mid-term,” therefore reducing cash burn.