Business
H1 Trading Update
H1 Trading Update.
About this update from Rolls-royce Holdings Plc
[{"type":"text","content":"\n \n \n RNS Number : 4631S\n Rolls-Royce Holdings plc\n 09 July 2020\n \n \n \n \n 09 July 2020\n \n \n \n ROLLS-ROYCE HOLDINGS PLC H1 2020 TRADING UPDATE\n \n \n \n \n \n First half 2020 summary\n \n \n · \n Widebody engine flying hours (EFH) down approximately 50% in H1 and 75% in Q2 \n \n \n · \n Good progress on Trent 1000 fixes; achieved single-digit aircraft on ground target\n \n \n · \n Defence remained resilient; low double-digit percent decline in Power Systems revenue \n \n \n · \n Free cash outflow of approximately £3bn, reflects £1.1bn reduction in receipts from EFH and engine deliveries and £1.1bn one-time impact from the cessation of invoice factoring \n \n \n · \n £1.0bn cost mitigation actions for 2020 on track; approximately £300m achieved in H1\n \n \n · \n Expect improved H2 performance with FY free cash outflow of approximately £4bn\n \n \n · \n Restructuring underway supporting free cash flow recovery to at least £750m in 2022 \n \n \n · \n $10bn reduction in hedge book to de-risk and re-align to expected mid-term demand \n \n \n · \n Liquidity increased to £8.1bn including new undrawn £2bn 5-year term-loan facility\n \n \n \n \n \n Warren East, CEO, said: \"These are exceptional times. The COVID-19 pandemic has created a historic shock in civil aviation which will take several years to recover. We started this year with positive momentum and strong liquidity and acted swiftly to conserve cash and cut costs to protect Rolls-Royce during the pandemic. We are taking steps to resize our Civil Aerospace business to adapt to lower medium-term demand from customers and help secure our future. This means we have had to take the very difficult decision to lose people who have helped us become the company we are and who have been proud to work for Rolls-Royce. It is my first priority to treat everyone - whether they are leaving or staying - with dignity and respect. We will take the lessons of how we have dealt with this unprecedented challenge with us and position ourselves to emerge as an even stronger company in the future.\"\n \n \n \n \n \n Protecting our people and communities \n \n \n We have worked hard to safeguard our people while ensuring our operations have been able to continue during this difficult period. We have implemented measures to protect against the spread of the v...