Rolls-Royce says trading ‘strong' despite tariffs and supply chain issues
British engineering giant Rolls-Royce has hailed a 'strong start' to the year despite growing uncertainty due to tariff increases and continued supply chain issues.
The London-based company stressed it expects to 'offset' the impact of announced tariffs and is taking mitigating actions.
Boss Tufan Erginbilgic said the company, which specialises in making aircraft engines, is also closely monitoring the potential impact of inflation and a wider economic slowdown on demand for its products.
It comes a month after US President Donald Trump announced a major plan for tariffs on imports into the country.
On Thursday, the firm held its profit and cash flow guidance for the rest of the year despite 'the uncertainties associated with tariffs and continued supply chain challenges'.
Rolls-Royce has been undergoing a major turnaround plan under chief executive Mr Erginbilgic which included cutting 2,500 jobs.
He said the business is making 'good progress on our transformation' and is confident of meeting its financial guidance for the year.
It is on track to deliver between £2.7 billion and £2.9 billion of underlying operating profit for 2025.
Bosses said it is continuing to see 'strong demand' for its products and services globally, with 'robust' order volumes in its defence business.
Mr Erginbilgic said: 'Our transformation of Rolls-Royce is progressing strongly and we continue to expand the earnings and cash potential of the business.
'We are creating a more resilient and agile Rolls-Royce that is better equipped to respond to changes in the external environment.
'As a result, we have had a strong start to the year.'
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