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Manufacturing

Rolls Royce raises profit forecast after turnaround strategy

The aerospace giant, which has 海角视频 bases in Bristol and Derby has raised its full-year operating profit forecast

Rolls-Royce engineers working on an aircraft engine thruster (Image: Jonathan Green/Rolls-Royce)

Rolls Royce has raised its full-year operating profit forecast by around 45%.

The aerospace giant, which has 海角视频 bases in Bristol and Derby, reported the boost in profits after military spend and a recovery in long-haul flying delivered a strong first half.

The FTSE 100 company, which produces engines for some of the world’s largest commercial aircraft, said on Wednesday (July 26) that it expected underlying operating profit to be £1.2bn-£1.4bn this year, up from a previous expectation of £0.8bn-£1bn. Analysts had previously forecast £934m.

Rolls Royce's chief executive Tufan Erginbilgic said in a statement that his turnaround had started well with progress "already evident".

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Mr Erginbilgic, who joined the company in January, said: "Our multi-year transformation programme has started well with progress already evident in our strong initial results and increased full year guidance for 2023. There is much more to do to deliver better performance and to transform Rolls-Royce into a high performing, competitive, resilient, and growing business.

"Despite a challenging external environment, notably supply chain constraints, we are starting to see the early impact of our transformation in all our divisions. Better profit and cash generation reflects greater productivity, efficiency and improved commercial outcomes."

Rolls-Royce said the margin improvements have been led by its Civil and Defence arms, which are based in the South West at Filton.