Rolls-Royce 1st Half Pretax Loss Widened

By Anthony O. Goriainoff

Rolls-Royce Holdings PLC said Thursday pretax loss for the first half of 2020 widened and the board won't recommend an interim shareholder payment for 2020 due to the coronavirus pandemic.

The U.K. engineering company said it has identified a number of potential disposals which are expected to generate proceeds of more than 2 billion pounds ($2.64 billion), and that these include ITP Aero and a number of other assets. As part of its restructuring plan, the company said more than 4,000 people in its civil aerospace division had left the business and it expects at least a further 5,000 to leave by year-end across the company. This includes over 2,500 voluntary severance and early retirement agreements in the U.K., it added.

Rolls-Royce said it has agreed a GBP2.0 billion loan in the second half "to help weather the continued uncertainty around the timing and shape of the recovery in the civil aviation sector."

For the half-year, pretax loss was GBP5.37 billion compared with a loss of GBP791 million for the first half of 2019.

Revenue was GBP5.82 billion compared with GBP7.88 billion for the year-prior period.

"In light of ongoing uncertainty in the civil aviation sector, we are continuing to assess additional options to strengthen our balance sheet to enable us to emerge from the pandemic well placed to capitalize on the long-term opportunities in all our markets," Chief Executive Warren East said.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

August 27, 2020 02:50 ET (06:50 GMT)

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