British engineering company Rolls-Royce has maintained its guidance to turn cash flow positive during the second half of 2021 despite warning of a challenging outlook, reports Reuters. The company also downgraded its cash outflow outlook for this year to 4.2 billion pounds, worse than the 4 billion pounds it guided in October.
- Rolls-Royce, which powers Boeing 787s and Airbus A350s, has been hit by a travel slump due to the pandemic.
- The company plans to sell assets worth 2 billion pounds to pay down debts and is cutting 1.3 billion pounds in costs.
- The company is axing 9,000 jobs and closing factories to adjust to lower demand from airlines and will trim more than 5,500 roles by the end of this year
- In October, Rolls-Royce raised $2.7 billion from shareholders and took on 3 billion pounds of debt to survive the pandemic.
Rolls-Royce stock is currently declining. RR: LON is down 6.10%
