LONDON (dpa-AFX) - Rolls-Royce Holdings plc. (RYCEF.PK, RR.L, RYCEY.PK) reported that its loss before taxation for the year ended 31 December 2020 widened to 2.91 billion pounds from 891 million pounds in the previous year. The latest-quarter result included 1.3 billion pounds net exceptional charges, largely as a result of COVID-19.
Underlying loss before taxation was 3.96 billion pounds, compared to underlying profit before taxation of 583 million pounds in the previous year.
Loss attributable to ordinary shareholders widened to 3.17 billion pounds or 52.95 pence per share from 1.32 billion pounds or 23.70 pence per share in the prior year.
Revenue for the year declined to 11.82 billion pounds from 16.59 billion pounds in the prior year.
The company noted that the impact of COVID-19 on international travel significantly altered the near and medium-term outlook for civil aviation.
In May 2020 the company launched a major restructuring program to fundamentally re-size the cost base and capital requirements of Civil Aerospace business. In total the company expect the restructuring to lead to the reduction of at least 9,000 roles by the end of 2022, most of which are in Civil Aerospace.
By the end of 2020, approximately 7,000 permanent and contractor roles had been removed with a significant proportion achieved through voluntary severance and natural attrition.
Through role reductions and a continued focus on costs, the company expects to reduce its operating costs and capital spend by 1.3 billion pounds versus 2019 levels, with full run-rate savings realized by the end of 2022.
In medium-term, the company aims to return to a net cash position and an investment grade credit position driven by free cash generation and planned 2.0 billion pounds disposal program.
Copyright RTT News/dpa-AFX
© 2021 AFX News
