Rolls Royce repeats full year guidance despite challenging supply chain environment
British engineering giant Rolls Royce said it expects to meet its full year 2024 guidance as it continues "at pace" on its transformation programme, aiming to create a "high-performing, competitive, resilient and growing business".
The company, which has sites in Bristol and Birmingham, said current trading was in line with expectations and it repeated guidance provided in August this year of operating profit between £2.1bn and £2.3bn and free cash flow between £2.1bn and £2.2bn.
This was despite the supply chain environment which remains challenging, noted CEO Tufan Erginbilgic in the trading update for the period to end-October.
"We are also making good progress towards our mid-term targets, with a front-end loaded delivery of profit and cash flow improvements.
"There is more we still need and want to do, as we expand the earnings and cash potential of Rolls-Royce," he added.
In civil aerospace, Rolls said demand remained strong across business aviation and widebody with large engine flying hours growing by 18% year-on-year to 102% of 2019 levels for the 10 months to October 31 this year.
In defence, demand remained strong with significant progress across key platforms, the company added.
In Power Systems, the company said power generation and governmental continued to deliver strong revenue growth supported by robust order intake.
In power generation, double-digit revenue growth was driven by data centres where demand for backup systems remained high, it noted.
In September, the company also said it had achieved a significant milestone in the development of the first new mtu engine platform in over 20 years, with the engine being tested to full power.
In nuclear, Rolls-Royce SMR was named in September as the preferred supplier for the construction of Small Modular Reactors (SMRs) by the Government of the Czech Republic and the Czech State utility ÄŒEZ Group.
In the UK Government's competition, Rolls-Royce SMR was shortlisted as one of four potential providers and it remains the only company in Step 3 of the generic design assessment - around 18 months ahead of the competition in the regulatory process.
The firm's 2024 full year results are set to be announced on February 27 next year.
Shares slipped nearly 2% in London on Thursday.
