Rolls-royce Share Discussion Threads

[darrin1471] 03/5/2020 09:59

Billionaire investor Warren Buffett says his company Berkshire Hathaway has sold all of its shares in the four largest US airlines.

Speaking at the annual shareholders' meeting, Mr Buffett said "the world has changed" because of the coronavirus.

The conglomerate had an 11% stake in Delta Air Lines, 10% of American Airlines, 10% of Southwest Airlines, and 9% of United Airlines, according to its annual report and company filings.

“I don’t know if two or three years from now if as many people will fly as many passenger miles as they did last year,” he said.

“If the business comes back 70 or 80 per cent, the aircraft doesn’t disappear. You've got too many planes.”

[johncasey] 03/5/2020 08:24

big crash monday down fifty qer cent

[jackdaw4243] 03/5/2020 08:04

Sad news for Derby

[jackdaw4243] 03/5/2020 08:03

Darrin
The papers are better informed than employees.

[neilyb675] 02/5/2020 16:21

10% up Monday

[darrin1471] 02/5/2020 14:12

FT

Rolls-Royce is preparing to cut up to 8,000 jobs, the biggest single reduction in more than 30 years, after aircraft makers Airbus and Boeing slashed production to cope with plunging demand from airlines struggling to survive a collapse in global air travel.

Senior executives of the UK aero-engine maker have begun work on a restructuring plan that would shrink the 52,000-strong workforce by up to 15 per cent, according to several people inside the company. 

It follows Ryanair’s announcement on Friday that it is preparing to cut 3,000 jobs, or 15 per cent of its 19,000 workforce, and IAG’s plan to slash 12,000 staff at British Airways, or almost 30 per cent of the 42,000 employed.

An announcement on a final figure is not expected before the end of May, when Rolls-Royce has said it will update employees. Discussions have just begun with unions, the sources said, and measures could still be found to mitigate the final number. However, the scale is still likely to be larger than after 9/11 when the group cut 5,000 jobs, two people said.

News of the planned job losses, which are expected to hit the UK civil business hardest, will be a blow to the government that had hoped to preserve employment by offering wage support programmes.

However, these only last until June and the global aerospace industry is now bracing for a sharp and protracted fall in demand after more than a decade of booming orders.

Government restrictions on travel in the battle against the coronavirus pandemic have brought global aviation to a virtual standstill and Airbus and Boeing have both said it will take several years to recover to 2019 levels. The world’s two biggest aircraft makers in recent weeks have slashed production by 35 per cent and 50 per cent, respectively. 

Rolls-Royce, focused on the long-haul segment of aviation that is expected to take the longest to recover, has also had to respond to the collapse in demand, said two people with knowledge of the situation.


The FT View
BA job cuts signal depth of crisis for airline sector

Stephen Daintith, finance director, told employees this week that the group expected its civil aerospace business to be a third smaller as a result of the crisis and that job losses could be expected.

Last month, Rolls-Royce suspended its dividend for the first time in more than 30 years, cut back on capital expenditure and ditched its target to achieve £1bn in free cash flow by the end of this year. The group is also considering cutting research and development investment, and slowing its next-generation engine programme, UltraFan.

“The impact of the Covid-19 pandemic is unprecedented,”; the company said. “We have taken swift action to increase our liquidity, dramatically reduce our spending in 2020, and strengthen our resilience in these exceptionally challenging times. But we will need to take further action.”

The vast majority of the job cuts are expected to hit the civil aerospace business, which employs 23,000 people worldwide and accounts for roughly half the group’s 2019 revenue of £15.4bn.

The UK’s 16,000 civil workforce is expected to bear the brunt of the cuts and, in particular, Derby, historic home of the 116-year-old company. About a quarter of the UK civil workforce has already been furloughed. Job losses are also expected in the civil operations in Singapore and Germany, as well as central and support functions.

This will be the latest in a series of restructurings and job loss programmes to have hit Rolls-Royce’s workforce since a string of profit warnings starting in 2013. This year was supposed to have drawn to a close a two-year plan to cut 4,600 support jobs.

In the past, job cuts have focused on managers, support staff and engineering staff. This time however, the cuts will affect the factory floor. “We have got to the point where this has to be done for the viability of the company,” said one person close to the subject.

[jackdaw4243] 02/5/2020 09:16

So I understand, end of May

[ljhrunner12] 01/5/2020 17:46

There are a lot of open vacancies in RR's defence business that will be filled by permanent staff from the Civil Aerospace division, and that process of displacement has already begun

[jackdaw4243] 01/5/2020 15:49

Careful

Don,t they have to book their time to something as they are not directly employed, my involvement with Hunting springs to mind.

[careful] 01/5/2020 15:29

rr. have many sub contract staff.
these would be the first to go.

[jackdaw4243] 01/5/2020 15:09

sh1984

I hope your correct and I admire your optimism.

With BA and Lying Air announcing job losses logic would say that a prudent manager in the supply chain would follow suit and cut back the workforce in all areas.

Logic would also say start at the top, but that seldom happens, tea ladies, cleaners and canteen staff first, supervisors,managers and team leaders last.

[jackdaw4243] 30/4/2020 18:18

We need big 1 day to give us the Tent Mods next door.

[gcd1] 30/4/2020 15:46

sh1984, same goes for Meggitt

[sh1984] 30/4/2020 15:21

Don’t forget RR do more than aerospace and the other aspects of the business is performing strongly with new contract wins in the energy industry.
Defence is always a strong point, at these prices a takeover bid is also on the cards.

I am more optimistic, Share price will be in the region of £5.50 by Christmas.

[darrin1471] 30/4/2020 12:05

Also watching Meggitt and Melrose. Still watching RR.
12,000 job loses at BA reinforces my belief we will not return to the same levels for several years.
I still believe market as a whole is due a significant correction and RR will fall more than the market average.
RR should survive and prosper over a 5 year period. I will buy in later.

Flight radar shows a small increase in the 7 day moving average for commercial flights over the last 2 days
hxxps://www.flightradar24.com/data/statistics

[ljhrunner12] 30/4/2020 09:54

Shorts hitting their stop losses most likely

[sh1984] 30/4/2020 09:40

What happened this morning? profit taking or short positions opening?

[sh1984] 29/4/2020 20:29

Meggitt looks good and so too does Melrose. That’s due a bounce, other aerospace shares have so its Melrose turn now.

[dennisbergkamp] 29/4/2020 17:47

Reason I was watching was because of service agreements but heard the stars will relax the rules on servicing requirements to help with reduced activity.

Will watch more

D

[jackdaw4243] 29/4/2020 16:08

Possibly the more aircraft that are on the ground with your engines with reduced flying hours/times for service saves you money.

Big 1 Day not on the thread for some time, he would give us some insight from the bolt on department in Derby and Tent 1000 mods next door.

[dennisbergkamp] 29/4/2020 11:27

Been dithering

What’s the reason for the rise today?

D

[gcd1] 29/4/2020 11:26

I also like the look of Meggitt :-)

[sh1984] 29/4/2020 11:08

good move, timed it perfectly.

[gcd1] 28/4/2020 13:18

Purchased this morning :-)

[jackdaw4243] 28/4/2020 08:07

Interesting article in yestdays Torygraph about Persian Gulf wealth funds and "Trophy Hunting", quoting stake in Carnival as an example.I didn't realise the extent of what they own, P&O was a suprise.Many UK companies including R R are incredibly undervalued.