© Reuters. FILE PHOTO: A BR700-725 jet engine is seen at the assembly line of the Rolls-Royce Germany plant in Dahlewitz near Berlin, Germany, February 28, 2023. REUTERS/Nadja Wohlleben/File Photo
LONDON (Reuters) -Aero-engineer Rolls-Royce (LON:) (OTC:) reported underlying operating profit of 673 million pounds ($855 million) in its first half, more than five times the level of a year ago, led by a large improvement in its civil aerospace margin.
The British company upgraded its full-year profit forecast last week to 1.2-1.4 billion pounds ($1.6-1.8 billion) from its previous guidance of 800 million-1 billion pounds. The market had been forecasting 934 million pounds.
Chief Executive Tufan Erginbilgic, who joined the company in January, said his transformation programme had started well, with progress already evident in the strong results and increased full-year guidance.
“Better profit and cash generation reflect greater productivity, efficiency, and improved commercial outcomes,” he said on Thursday. “We have tightly managed our cost base to offset inflationary cost pressures.”
Shares in Rolls, whose engines power Airbus A350 and Boeing 787 long-haul jets, rose to the highest level since March 2020 after it updated its forecasts last week.
($1 = 0.7871 pounds)