Major profits boost for Rolls-Royce as turnaround plan pays off

Engineering giant Rolls-Royce has significantly upgraded its full-year profit forecasts after a strong first six months of the year.

The firm’s chief executive Tufan Erginbilgic, has hailed his transformation programme as the reason for the turnaround.

Rolls-Royce will make an underlying profit of £660-680m in the first six months of year – up from its forecast of £328m, while full-year profits are expected to reach £1.2-£1.4bn – a significant hike from the previous consensus of £934m.

Rolls-Royce said the margin improvements have been led by its Civil and Defence arms-  which are based in the South West.

Tufan Erginbilgic said: “Our multi-year transformation programme has started well with progress already evident in our strong initial results and increased full year guidance for 2023. There is much more to do to deliver better performance and to transform Rolls-Royce into a high performing, competitive, resilient, and growing business. Despite a challenging external environment, notably supply chain constraints, we are starting to see the early impact of our transformation in all our divisions. Better profit and cash generation reflects greater productivity, efficiency and improved commercial outcomes.”