Latest news with #Erginbilgic
Daily Mail
01-05-2025
- Business
- Daily Mail
Rolls-Royce hails a 'strong start' to the year as it eyes £3bn profits despite tariff trade blow
British engineering giant Rolls-Royce hailed a 'strong start' to the year despite the turmoil triggered by Donald Trump's trade war. At the annual meeting with shareholders in Derby, chief executive Tufan Erginbilgic said 'global tariff increases have created a degree of uncertainty for the industry'. But he said the FTSE 100 engine maker will 'offset' the impact of the levies 'through the mitigating actions we are taking' including tweaks to its supply chain to avoid the most punishing tariffs. Shares rose 1.7 per cent, or 12.8p, to 787p, and are up more than eightfold since Erginbilgic took the helm in 2023 and launched a major turnaround. The trade war between the world's two biggest economies, which has seen President Trump impose taxes of up to 145 per cent on Chinese goods and Beijing hit back with a 125 per cent levy, has shocked the global supply chain. Rolls, which builds engines for Airbus planes and the Boeing 787, has substantial manufacturing facilities in the US, in addition to Derby, its power systems business in Germany, and a facility in China. It said it was on course for profit of between £2.7billion and £2.9billion – despite tariffs and the supply chain challenges. Erginbilgic, whose plan includes cutting 2,500 jobs, said: 'Our transformation is progressing strongly and we continue to expand the earnings and cash potential. 'We are creating a more resilient and agile Rolls-Royce. As a result, we have had a strong start to the year.' Russ Mould, investment director at AJ Bell, said: 'Rolls is one of the most vulnerable UK-listed companies to US tariffs because of its involvement in aircraft parts, a key export to the States. 'Had the tariff tantrum happened five years ago, Rolls might have struggled to cope given the business was weak. 'Having been nursed back to full health, it now stands a much better chance of coping with tariff pressures. 'Investors are taking unchanged guidance to be a massive win. The fact Rolls is sticking with previous earnings and cash flow expectations has prompted another leg-up for the share price.'
Powys County Times
01-05-2025
- Business
- Powys County Times
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.'
Daily Mail
01-05-2025
- Business
- Daily Mail
Rolls-Royce to 'offset' tariff blow thanks to Turbo Tufan's turnaround
Rolls-Royce will 'offset' the impact of US tariffs via ongoing turnaround efforts spearheaded by its chief executive, the aerospace and defence giant said on Thursday. The FTSE 100 group maintained full-year underlying operating profit guidance of £2.7billion to £2.9billion, up from £2.5billion in 2024, after a 'strong start to the year' that saw all divisions perform well. Rolls has been riding high thanks to the success of a strategy shake-up led by chief executive Tufan Erginbilgic, after the pandemic left the aerospace and engineering giant on its knees. It has continued to benefit from an increase in flying hours and global defence spending, while the impact of cost control measures brought in under Erginbilgic has fattened profit margins. The firm is on a mission to achieve £3.6billion to £3.9billion in underlying operating profits by 2027. Erginbilgic told shareholders at Roll's annual general meeting on Thursday that global tariff increases 'have created a degree of uncertainty for the industry', but the group will 'offset the impact' of levies 'through the mitigating actions we are taking'. He added: 'We are closely monitoring the potential indirect impact on economic growth and inflation, and will continue to take the necessary actions. 'Good progress on our transformation and the actions we are taking give us confidence in our guidance for 2025.' Rolls-Royce shares opened 3.2 per cent higher at 778.52p. They have now added more than 90 per cent over the last 12 months and a blockbuster 625 per cent over the last five years. It came as Rolls-Royce, which is also targeting £2.7billion to £2.9billion of free cash flow for 2025, revealed its civil aerospace division saw large engine flying hours in the first quarter hit 110 per cent of 2019 levels. Rolls said strong aftermarket revenue growth was 'driven by higher shop visit volumes'. In defence, Rolls said 'demand remains robust' across its portfolio with strong order intake. In April, the group delivered the first AE 3007N engine to Boeing for the MQ-25 program, the US Navy's first aircraft carrier-based unmanned air vehicle to be used for refuelling, intelligence and surveillance. Meanwhile its power systems unit benefited from 'continued demand' for back-up power generators for data centres. Erginbilgic added: '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.'
The Independent
01-05-2025
- Business
- The Independent
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.'
The Independent
06-03-2025
- Business
- The Independent
Rolls-Royce chief executive's pay package falls by nearly £10m
Rolls-Royce boss Tufan Erginbilgic took a nearly £10 million pay cut in 2024, despite leading the engine maker through a financial turnaround. Mr Erginbilgic's pay packet was £4.1 million last year, according to Rolls-Royce's annual report, down from £13.6 million in 2023. Most of the fall came from a £7.5 million share package he got after joining Rolls-Royce in 2023, to compensate him for leaving his previous job in private equity. But the chief executive also saw payments from his annual incentive plan nearly halve, to £2.5 million. The drop came as Rolls-Royce sales grew in 2024, while the FTSE 100 firm also recently upgraded its profit forecast for this year and said it would buy back about £1 billion of stock from investors. The buyback is the first in 10 years at Rolls-Royce, which makes engines for commercial aircraft. The company is also one of Britain's largest military suppliers, making engines and power systems for large swathes of the military. The results marked a significant turnaround for the UK manufacturing giant, which had suffered a torrid few years after the pandemic. It was forced to raise emergency funding when the aviation industry ground to a halt during Covid-19 lockdowns. Mr Erginbilgic joined in early 2023 and has since slimmed down the company, including cutting 2,500 jobs from its roughly 50,000-strong workforce. He has also tackled ongoing supply chain issues which have hampered Rolls-Royce's financials in recent years. Rolls-Royce shares jumped 15% after it announced the results in February. In its annual report, the company's pay committee chairman, Lord Jitesh Gadhia, hailed the 'impressive progress' during the year. While his overall pay deal fell considerably, Mr Erginbilgic's base salary rose about 30% to 1.1 million.
