Rolls-Royce crashes to £5.4bn first-half loss on Covid-19 hit

first_img Rolls-Royce is eyeing £2bn in disposals after seeing its finances devastated by the pandemic. (AFP via Getty Images) Also Read: Rolls-Royce crashes to £5.4bn first-half loss on Covid-19 hit Planes stopped flying for months earlier this year and travel still remains at a much lower level than previously, hitting Rolls-Royce’s revenues as airlines pay it on the basis of how many hours engines fly. The company said it had liquidity of £6.1bn comprising £4.2bn of cash at 30 June, and £1.9bn undrawn revolving credit facility. It said it had secured an additional £2bn undrawn term loan which it finalised this month. whatsapp The company said it aimed to sell its Spanish unit ITP Aero and other assets to raise at least £2bn to boost its balance sheet, which has been shattered by the travel slump brought on by the coronavirus pandemic. Rolls-Royce is eyeing £2bn in disposals after seeing its finances devastated by the pandemic. (AFP via Getty Images) The aero giant said revenue crashed 26 per cent to £5.8bn and reported a post-tax loss of £5.4bn and an underlying post-tax loss of £3.3bn in the six months to 30 June. Rolls-Royce said it expects annualised pre-tax savings of at least £1.3bn by the end of 2022 from the restructuring programme, with approximately £700m of savings directly related to job cuts. James Booth Chief executive Warren East said: “While our actions have helped to secure the group’s immediate future, we recognise the material uncertainties resulting from Covid-19 and the need to rebuild our balance sheet for the longer term. Rolls-Royce also said its finance boss Stephen Daintith had resigned to move to retail technology firm Ocado, but that he would remain in his role to support an orderly transition as he helps oversee £1bn of cost cuts this year. Thursday 27 August 2020 8:26 am Show Comments ▼ The company is cutting up to 8,000 roles to save cash and said by 27 August more than 4,000 people had left the business with at least 5,000 expected by year-end.center_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeDaily FunnyFemale Athlete Fails You Can’t Look Away FromDaily FunnyNoteableyJulia Robert’s Daughter Turns 16 And Looks Just Like Her MomNoteableyDefinitionThe 20 Worst Draft Picks Ever – Ryan Leaf Doesn’t Even Crack The Top 5Definitionbonvoyaged.comThese Celebs Are Complete Jerks In Real Life.bonvoyaged.comBeach RaiderMom Belly Keeps Growing, Doctor Sees Scan And Calls CopsBeach RaiderOne-N-Done | 7-Minute Workout7 Minutes a Day To a Flat Stomach By Using This 1 Easy ExerciseOne-N-Done | 7-Minute WorkoutJustPerfact USAMan Decides to File for Divorce After Taking a Closer Look at This Photo!   JustPerfact USABleacherBreaker4 Sisters Take The Same Picture For 40 Years. Don’t Cry When You See The Last One!BleacherBreakerMisterStoryWoman files for divorce after seeing this photoMisterStory Share Rolls-Royce crashes to £5.4bn first-half loss on Covid-19 hit Rolls-Royce is eyeing £2bn in disposals after seeing its finances devastated by the pandemic. (AFP via Getty Images) Also Read: Rolls-Royce crashes to £5.4bn first-half loss on Covid-19 hit whatsapp It said it proposed to raise funds by selling its wholly-owned subsidiary ITP Aero, which is based in Spain and makes turbine blades for jet engines, as well as other assets, alongside consolidating its manufacturing facilities into six locations from 11. The cuts are spread across the UK, Germany, Singapore and other locations and include more than 2,500 voluntary and early retirement agreements in the UK. “We have identified a number of potential disposals that are expected to generate proceeds of more than £2bn, including ITP Aero and a number of other assets. Furthermore, in light of ongoing uncertainty in the civil aviation sector, we are continuing to assess additional options to strengthen our balance sheet to enable us to emerge from the pandemic well placed to capitalise on the long-term opportunities in all our markets.” Engine-maker Rolls-Royce said today it had swung to a loss of £5.4bn for the first-half following the economic shock of the Covid-19 pandemic. Rolls-Royce shares fell six per cent this morning to 237p. 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