Rolls-Royce slumps to £5.4bn loss and plans disposals
Company says engine orders have declined
Engineering giant Rolls-Royce laid bare the impact of the coronavirus on its order book by revealing it made a pre-tax loss of £5.4bn in the six months to the end of June.
This compared to a loss of £791m last year. The latest data represents the company’s biggest interim loss on record.
The company was hit by £1.1bn in write-offs and impairments, a £2.6bn loss on foreign exchange hedging contracts, and restructuring costs of £366m.
It reported an underlying operating loss of £1.6bn, compared to a profit of £203m in 2019. Revenue slumped 24% to £5.5bn.
It confirmed plans to close factories in Nottinghamshire and Lancashire, as part of plans to cut 3,000 jobs across the UK, including 700 at Innchinnan near Glasgow.
The company said it aimed to sell its Spanish unit ITP Aero and other assets to raise at least £2bn to rebuild its balance sheet,
CFO Stephen Daintith has informed the board that he has decided to leave the company to take up another opportunity.