A strong first half of the year has seen Rolls-Royce upgrade its profit expectations for 2023.
In a new trading update the Derby company highlighted “significantly improved first half results” with higher underlying operating profit of £660m-£680m, reflecting “continued end-market growth and [Rolls-Royce’s] focus on commercial optimisation and cost efficiencies across the group.”
Looking ahead, the company has raised its full year guidance, expecting underlying operating profit of £1.2bn-£1.4bn in 2023.
Rolls Royce says its multi-year transformation programme has delivered strong initial results, while an increased focus on costs and productivity has helped to offset the impact of inflation and mitigate supply chain pressures.
Tufan Erginbilgic, CEO, said: “Our multi-year transformation programme has started well with progress already evident in our strong initial results and increased full year guidance for 2023. There is much more to do to deliver better performance and to transform Rolls-Royce into a high performing, competitive, resilient, and growing business.
“Despite a challenging external environment, notably supply chain constraints, we are starting to see the early impact of our transformation in all our divisions. Better profit and cash generation reflects greater productivity, efficiency and improved commercial outcomes.”
