Rolls-Royce 1st Half Pretax Loss Widened
August 27 2020 - 3:05AM
Dow Jones News
By Anthony O. Goriainoff
Rolls-Royce Holdings PLC said Thursday pretax loss for the first
half of 2020 widened and the board won't recommend an interim
shareholder payment for 2020 due to the coronavirus pandemic.
The U.K. engineering company said it has identified a number of
potential disposals which are expected to generate proceeds of more
than 2 billion pounds ($2.64 billion), and that these include ITP
Aero and a number of other assets. As part of its restructuring
plan, the company said more than 4,000 people in its civil
aerospace division had left the business and it expects at least a
further 5,000 to leave by year-end across the company. This
includes over 2,500 voluntary severance and early retirement
agreements in the U.K., it added.
Rolls-Royce said it has agreed a GBP2.0 billion loan in the
second half "to help weather the continued uncertainty around the
timing and shape of the recovery in the civil aviation sector."
For the half-year, pretax loss was GBP5.37 billion compared with
a loss of GBP791 million for the first half of 2019.
Revenue was GBP5.82 billion compared with GBP7.88 billion for
the year-prior period.
"In light of ongoing uncertainty in the civil aviation sector,
we are continuing to assess additional options to strengthen our
balance sheet to enable us to emerge from the pandemic well placed
to capitalize on the long-term opportunities in all our markets,"
Chief Executive Warren East said.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
August 27, 2020 02:50 ET (06:50 GMT)
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