UK's Rolls-Royce confident on targets despite tariff uncertainty
LONDON: British engineering company Rolls-Royce said on Thursday it expected to be able to offset the impact of global tariffs to keep it on track for 2025 profit targets, following a strong start to the year.
Britain's preeminent engineering company did not give details of the actions it was taking but the company is in the middle of a transformation plan to improve margins and make the business more resilient and agile.
"We expect to offset the impact of announced tariffs on our business through the mitigating actions we are taking," Chief Executive Tufan Erginbilgic said in a statement on Thursday before the company's annual meeting.
Rolls said the trade war between the world's two biggest economies, with President Donald Trump imposing taxes of up to 145 per cent on Chinese goods and Beijing hitting back with a 125 per cent tariff, was causing uncertainty for industry.
It added that it was closely monitoring the potential indirect impact on economic growth and inflation.
Rolls-Royce, Airbus's exclusive engine partner on its widebody planes and a supplier to Boeing's 787, has substantial manufacturing facilities in the United States, in addition to its main base in Derby, England, its power systems business in southern Germany, and a maintenance facility in China.
For 2025, Rolls-Royce still expects to make underlying operating profit of between 2.7 billion pounds and 2.9 billion pounds.
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