Warren East’s reboot of struggling industrial giant Rolls-Royce gathered pace as the aircraft engine maker’s first-half profit more than doubled, aided by the chief executive’s restructuring plan.
At the same time Mr East left his 12-month outlook for “modest” performance improvements unchanged in guidance on Tuesday, warning that the London-based company faces production hurdles in the second half that will make or break its year and indicate whether the recovery has truly taken hold.
Adjusted pretax profit jumped to £287 million in the first half from £104 million a year earlier as sales advanced 12 per cent to £7.57 billion, Rolls said in a statement. Analysts had predicted earnings of £158 million, according to data compiled by Bloomberg.
Rolls-Royce shares surged 10 per cent, the most in a year.
Under Mr East, recruited in 2015 after running semiconductor maker ARM Holdings, the group has cut management, reorganised units and begun a review as it repositions to tap the biggest jetliner backlog in history. – Bloomberg
