British aircraft engine manufacturer Rolls-Royce reported a free cash flow of minus 429 million pounds in the first half of 2019, compared with minus 72 million pounds in the same period last year. The share is down about 1.6 percent on the London Stock Exchange.
During Tuesday's conference call, Rolls-Royce announced that the company currently has around 50 engines waiting to be delivered, compared to a normal order of around 15, writes Bloomberg.
”We expect a significant cash improvement in the second half of 2019 as we phase out inventories built up to support customer deliveries and benefit from improved trading in both Power Systems and Civil Aerospace,” Warren East, CEO of Rolls-Royce, writes in the report.
The aircraft engine manufacturer's revenue came in at £7.353 billion for the first half of the year, compared with £7.040 billion in the same period last year. Underlying operating profit was £203 million, compared with £141 million in the first six months of 2018.
Rolls-Royce also takes a cost of £100 million for the Trent 1000 engine over three years related to turbine blade repairs.
Source: di.se
