LONDON (dpa-AFX) - Rolls-Royce Holdings plc. (RYCEF.PK, RR.L, RYCEY.PK), in its trading update to 30 November 2021, said that its restructuring program is delivering sustainable savings of more than 1.0 billion pounds in fiscal year 2021. It expects free cash outflow in 2021 to be better than the 2 billion pounds previously guided.
The company said it has seen continued gradual recovery in its Civil Aerospace business, a growing order book in Power Systems and have secured a significant contract win in Defense.
In addition, the company said its restructuring program, launched in May 2020, is delivering sustainable cost savings more quickly than initially anticipated, and positions it well for the 1.3 billion pounds savings target by the end of 2022.
By the end of 2021, the company expects to have removed more than 8,500 roles, with the pace of restructuring running ahead of original plan and footprint rationalization continuing through the second half of the year.
The company noted that the improved trading performance drove a return to positive free cash flow in the third quarter and reduced the outflow expected in the second half.
In addition, around 300 million pounds of original equipment (OE) concession outflows, originally expected in 2021 are now expected to fall in 2022 due to delayed delivery of aircraft for which it has already supplied engines.
The company noted that its trading in Defense is in line with its expectations with steady demand from its customers.
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