Rolls Royce reports profit in the first half; share prices soar too
Move by the new CEO of Rolls Royce to raise prices for servicing jet engines pays off with £673m returns and a rise in share price.
Rolls-Royce raised its profits fivefold in the first half of this year after its recent chief executive, Tufan Erginbilgic, increased prices for servicing jet engines.
The FTSE 100 engineering firm made an underlying operating profit of £673m between January and June, a climb from £125m in the same time last year, it said in a statement to the share market on Thursday.
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Rolls-Royce shocked investors last week by boosting its profit anticipations, starting a share price surge. Erginbilgic said the business had “a lot more to do” in a turnaround strategy he launched upon joining in January, although he said the rate of progress would restrict from this point.
“You make obvious interventions, but I am not saying easy interventions,” he stated. “If they were easy, someone else would have done it.”
Increasing prices was the main action in improving Rolls-Royce’s civil aerospace business, which makes and maintains jet engines for larger aircraft. Erginbilgic said the firm had split billing for materials and time, raising costs by 12%.
