The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Warren East’s reboot of struggling industrial giant Rolls-Royce Holdings Plc 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, 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.
Rolls-Royce shares surged 10 percent, wiping out declines when it reined in expectations for its long-term cash goal. Under East, recruited in 2015 after running semiconductor maker ARM Holdings Plc, the group has cut management posts, reorganised units and begun a strategy review as it repositions to tap the biggest jetliner backlog in history.
“We’ve made good progress but there’s still a lot to do and I’m telling people this is no time for complacency,†East said. His restructuring helped boost profitability with increased deliveries.