Rolls-Royce turnaround moving ‘at pace’ under new CEO

British engine maker Rolls-Royce (RR.L) said the new CEO’s plan to boost the company’s profitability was moving “at pace”, and it was on track to meet 2023 forecasts, buoyed by cost savings and the ongoing travel recovery.

But shares in the company, which has been one of the top risers on the FTSE 100 index over the year to date with a 64% gain, were down 2% in early deals which one analyst said was due to disappointment over the lack of an upgrade to the outlook.

Tufan Erginbilgic, who took over as chief executive in January, has said Rolls, which provides engines for Airbus A350 and Boeing 787 planes, is a “burning platform” which needs to improve its cash generation, cut debt and invest for the future.

A strategic review he initiated is due to report in the second half of 2023, he confirmed on Thursday.

What the company called its “transformation” was already keeping costs down and finding savings, it said, highlighting the closure of its R2 Factory venture, an artificial intelligence start-up, as an example.

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