Rolls-Royce Maintains Annual Profit Growth Guidance

LONDON (Reuters) – Britain's Rolls-Royce (OTC:RYCEY) maintained its guidance for an annual profit growth of at least 30% this year, driven by increased airline activity and rising demand for power from data systems and defense equipment.

Despite ongoing issues in the aerospace supply chain causing delays for parts, which are expected to cost the company £150 million to £200 million this year, Rolls-Royce remains optimistic.

Chief Executive Tufan Erginbilgic expressed confidence in achieving the 2024 guidance, noting that the company’s year-to-date performance supports this outlook. Rolls-Royce, a key supplier of engines for Airbus's widebody planes and Boeing's 787, is forecasting an underlying operating profit of between £2.1 billion and £2.3 billion for this year.

Additionally, Rolls-Royce, which also manufactures engines for ships and submarines and power generation systems, updated its outlook in August and reintroduced the dividend that had been suspended during the pandemic due to a halt in air travel.

Shares of Rolls-Royce have increased by 487% since Erginbilgic became CEO in January 2023.

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