(Coquille in the title)
LONDON (Reuters) – Britain’s Rolls-Royce said on Thursday it expects profit to rise by up to 25% this year, after beating targets by more than doubling its profit in 2023.
Rolls-Royce shares rose 10.95% on the London Stock Exchange at 12:40 GMT.
The manufacturer’s stock price jumped by more than 200% under the leadership of Tufan Erginbilgic, who took the reins of the manufacturer in early 2023 and launched a transformation plan to reduce costs and improve prices.
“We are building momentum and a track record of significant results,” the CEO said in a conference call Thursday.
The group’s underlying operating profit rose to 1.6 billion pounds (1.9 billion euros) in 2023, well above analysts’ forecasts of 1.4 billion pounds, and exceeding the 652 million pounds recorded in 2022.
Bernstein analyst George Zhao called 2023 a “historic year” for Rolls-Royce.
“The main driver of action is progress towards the 2027 objectives,” he explains.
For 2024, Rolls Royce expects underlying operating profit of between 1.7 and 2 billion pounds, above the consensus of 1.695 billion.
The group, which notably manufactures aircraft engines, has benefited from the rebound in travel demand since the pandemic.
(Reporting Sarah Young; Stéphanie Hamel and Carole Lebreton, editing by Kate Entringer)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
