Rolls-Royce retains guidance after solid third quarter
By Benjamin Chiou
Date: Thursday 07 Nov 2024
(Sharecast News) - Engineering giant Rolls-Royce has reiterated its full-year guidance after a solid third-quarter performance, with demand remaining strong across civil aerospace, defence and power systems markets.
The company said it continues to expect underlying operating profit to be between £2.1bn and £2.3bn for 2024, up from £1.6bn in 2023, while free cash flow is forecast to be between £2.1bn and £2.2bn, up from £1.3bn.
"Our transformation of Rolls-Royce into a high-performing, competitive, resilient and growing business continues with pace and intensity," said chief executive Tufan Erginbilgic. "Continued good performance year to date gives us further confidence in the delivery of our 2024 guidance despite a supply chain environment which remains challenging."
Conditions in the aerospace industry supply chain remain tough, the company said, as it works to support growing OE and aftermarket volumes. "We have concentrated our efforts on 15 suppliers, where our interventions have driven performance improvements," it said.
In civil aerospace, large engine flying hours have increased by 18% over the first 10 months of the year and now sit at 102% of 2019 levels.
In defence, the next phase testing on the F130 engine began in August, as Rolls-Royce moves closer to delivering the US Air Force B-52J Stratofortress. Meanwhile, the company's Future Long Range Assault Aircraft programme for the US Army is in its final stage before production starts, while work also also commenced for prime contractor SNC on the Survivable Airborne Operations Center programme.
In the power systems division, power generation and governmental continue to deliver strong revenue growth supported by robust order intake.
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