Rolls-Royce targets vast upturn in profits
New chief Tufan Erginbilgic sets new goals for lacklustre civil aerospace business
Rolls-Royce is to sell its electric aircraft division and target annual savings of up to £500mn as part of a sweeping shake-up under new chief executive Tufan Erginbilgic.
The FTSE 100 group on Tuesday set out new targets for operating profit and free cash flow over the medium term, including plans to generate up to £3.1bn of free cash flow by about 2027.
In civil aerospace, its core business, it is promising to lift operating margins from 2.5 per cent in 2022 to 15-17 per cent over the period.
“We are setting compelling and achievable financial targets for the midterm which will take Rolls-Royce significantly beyond any previous financial performance,” said Erginbilgic.
The company last month announced plans to cut up to 2,500 jobs as part of its bid to streamline its operations and boost returns.