Rolls-royce Share Discussion Threads

[patientcapital] 04/8/2024 08:23

I read about that yesterday. If funds are needed I'd sooner a small rights issue to keep as much ownership of the subsidiary as possible.

[freddie01] 04/8/2024 05:34

108 Trent XWB-97 Orders Help Rolls-Royce Report $1.4 Billion H1 Operating Profit



Rolls-Royce reported a £1.1 billion operating profit in H1 2024, up £0.5 billion despite supply chain challenges.

The A350 engine leads in sales, with Trent XWB-97 engines securing 108 new orders in H1.

Rolls-Royce raises 2024 financial guidance after strong H1 results, now aiming for £2.1-2.3 billion operating profit.

The UK aviation giant Rolls-Royce has announced its financial results for the first six months of 2024. The aircraft engine maker reported a £1.1 billion ($1.4 billion) operating profit in H1 2024, with the profit rising by £0.5 billion ($640 million) despite a “challenging supply chain environment.”

The positive financial results were attributed to the company’s transformation program and strategic initiatives, with commercial optimization and cost efficiency actions, which have helped to mitigate the impact of inflation. In a statement, Tufan Erginbilgic, CEO of Rolls-Royce , said:

“We are expanding the earnings and cash potential of the business in a challenging supply chain environment, which we are proactively managing. We are on track to deliver our mid-term targets.”

The A350 engine leads in sales
According to the report, Rolls-Royce’s civil aerospace division saw the largest improvement in H1 2024, delivering an operating margin of 18%. This was driven by higher aftermarket profits from large engine long-term service agreements (LTSA) and time-and-materials contracts, stronger performance in business aviation for both original equipment and aftermarket services.

According to the statement,

“We continue to drive for improved commercial terms and lower costs across our widebody and business aviation contracts. This resulted in total contractual margin improvements of £431 million.”

In civil aerospace, the Trent XWB-97 engines secured 108 new orders and became the best selling engine in the first half of the year. It is worth noting that the Trent XWB-97 engines power Airbus A350-1000 widebodies. The XWB-97 is a 97,000lb thrust Trent and is the more powerful sister engine of the XWB-84, which powers the A350-900 aircraft.

In a recent £1 billion investment program to improve the company’s engines, Rolls-Royce said that it will upgrade its trent XWB engines with a new disc alloy and better aerodynamics. The newly upgraded engines have already been tested on the A350. According to the company, the aircraft underwent some of the most extensive endurance testing, including 2,800 hot cycles.

Future financial outlook
Rolls-Royce has raised its 2024 financial guidance in response to a strong first half of the year. The UK company now anticipates reaching an operating profit between £2.1 billion ($2.6 billion) and £2.3 billion ($2.9 billion) this year, up from the previously anticipated range of £1.7 billion ($2.1 billion) to £2 billion ($2.5 billion).

The company’s updated free cash flow guidance for 2024 now includes a £150-200 million ($192-256 million) impact due to ongoing supply chain issues and limited parts availability.

“We anticipate a continued impact to free cash flow for a further 18-24 months as supply chain challenges persist. We are actively managing these challenges and seek to mitigate the costs.”

[eeza] 03/8/2024 18:14

The British Disease.

[mcunliffe1] 03/8/2024 18:05

If only the £1.8bn the govt. has clawed from the (soon to be cold) pensioners was invested into RR SMR's and the go-ahead given to start making these things.'

Perhaps electricity produced by the SMR's would prove less expensive than wind-farms and, of course, be connected to the grid if several SMR's were located at each, old, soon to be decommissioned existing nuclear site.

Missed opportunities abound.

[cevodniya] 03/8/2024 14:35

MCunliffe1 yeh these deluded self anointed influence couldn't influence anything.
They are a miniscule part of 20%.

[mcunliffe1] 03/8/2024 14:06

Thanks Cev. An interesting look at who owns the majority of RR shares.

If nothing else, it reinforces the fact that rampers and de-rampers of this share on this thread at least have absolutely NO effect upon the share price

[freddie01] 03/8/2024 11:04

Rolls-Royce staff rewarded with £700 each in shares


Rolls-Royce is to hand £700 worth of shares to all staff as the aerospace giant cheers a successful turnaround.

Chief executive Tufan Erginbilgic said the engine maker will give 150 shares to 'every colleague, in every part of our organisation' in September.

It follows half-year results this week, with Rolls announcing a first dividend since the pandemic.

The move was cheered by investors who had been calling for Erginbilgic to reinstate the prized payout.

Shares flew to a record high on Thursday but fell back 3.6 per cent, or 17.2p, to 463.9p yesterday. It has around 42,000 people worldwide and all are set to get shares.

In an internal message to employees, Erginbilgic said that the resumption of the dividend payout marked an 'important moment' for shareholders and future investors.

He added: 'These results have been made possible thanks to your hard work and our collective actions.

'You are making the difference. It is therefore important that you share in our success. That is why we are giving you the opportunity to own part of Rolls-Royce.'

'Turbo' Tufan, as he is better known, joined at the start of 2023 when Rolls was struggling to recover from the pandemic and had racked up mammoth losses as planes were grounded.

But he has cut costs – expected to fall by £200m a year by the end of 2025 – and paid down debts.

Last October, Rolls announced 2,500 job cuts. The shares' value have more than quadrupled since the start of 2023, a factor that has earned Erginbilgic his nickname of 'Turbo' Tufan.

[cevodniya] 03/8/2024 09:37

Careful
hxxps://poundf.co.uk/rolls-royce

[careful] 02/8/2024 17:45

The only thing that matters in the long run is cash flow and profits.

What is going on in America today is caused by the fear of a hard landing.
We should watch trends in air transportation.

RR are doing great but there are risks.
Middle eastern instability is one of them.
It may all blow over, but sometimes the party atmosphere on this thread is a bit too bullish.
(After many years of pessimism.)
At 500p the shares were over valued despite fantasy target prices from some analysts.

Next Monday will be critical after weekend World markets reaction.
Hopefully a quick bounce back.

[eeza] 02/8/2024 17:24

Rolls-Royce to give each worker £700 in shares

[jugears] 02/8/2024 13:52

careful this is just overreaction & panic sellers only to be expected on the returns we have all seen here, plenty of upside here IMEO.

[eeza] 02/8/2024 13:46

EZJ & JET2 only down 1.5%.

[careful] 02/8/2024 13:42

The results showed the forward pe to be about 18.
There will be a modest dividend.

We are bound to be sensitive to a slowing down of air travel after this post cover manic growth and indication in America.

It all depends upon how we estimate RR growth going forward as how we rate it.
Never get too exited.

[jugears] 02/8/2024 13:36

careful, unfortunately today's share prices have very little to do with a companies performance.
Davetedjack, its not frustrating at all, the markets always over react,nothing goes up in a straight line, these little routes are actually quite good for topping up, these will be nearer £6 than £4 by Christmas I am SURE of that IMEO. had it not been for the markets over reacting I'm sure this would be over £5.00 today, unfortunately some of us have been here from the very lows so you will always get some panic selling & they will be the ones buying back in at a higher price next week when the share price goes back up again & trust me this will be up as quick as it fell.

[davetedjack] 02/8/2024 13:04

If this happens when NFP released what is going to happen on US openUnbelievable the way our markets react to othersAlways appears to be totally overdoneWe shouldn't be 8.5 % down from yesterdays high we should be powering forward after the excellent resultsMy while PF has plunged since US open yesterday Very frustrating

[noramping] 02/8/2024 12:42

USA getting a cold

[xtrmntr] 02/8/2024 12:09

https://www.bbc.co.uk/news/articles/c51y1eqpqwxo.amp

[smurfy2001] 02/8/2024 10:44

British Airways owner IAG shares soar despite market headwinds



Late on Thursday, IAG also said it would hand shareholders their first dividend payment since the Covid-19 pandemic as it said travel demand remained strong.

IAG said it was partly boosted by “strong demand” for short-haul flights across Europe.

Chief executive Luis Gallego said: “We see continuing strong demand for travel in the attractive core markets in which we operate: North Atlantic, Latin America and intra-Europe.

[careful] 02/8/2024 10:34

I hope they do go up, good to see a UK company doing well.

I think I must be an old fashioned investor looking at fundamentals and PE ratios etc.

Modern markets are based upon momentum not fundamentals.
The big boys take a position and then claim the share price is about to triple.
And it sometimes does.

Guess half empty types like myself have no place.
'we are doomed'...

[jugears] 02/8/2024 10:23

carefull, the whole market is down today, I wouldn't worry they will all be back up next week.

[smurfy2001] 02/8/2024 09:55

GDP is expected to be over 2% in the US for FY24 more than double the UK.