Shares in Rolls-Royce Holdings (LON:RR) have jumped more than one percent in London in today’s session, as the company, which has been trying to recover from a string of profit warnings, said that its expectations for the full year remained unchanged. The company, however, signalled that investors should expect fewer orders at the upcoming airshow in Paris.
As of 10:20 BST, Rolls-Royce’s share price had added 1.84 percent to 911.50p, outperforming the benchmark FTSE 100 index which currently stands 0.76 percent higher at 7,475.39 points. The group’s shares have added more than 49 percent to their value over the past year, and are up by some 35 percent in the year-to-date.
Rolls-Royce announced in a statement this morning that it had started the year well, with all the group’s businesses performing in line with expectations. As a result, the British engine maker’s forecasts for full-year revenue, profit and free cash flow remain unchanged.
“2017 has started well, although we have a great deal more to do to deliver the full year. As expected, near term cash flow performance remains challenging as we continue to invest in transforming and growing the business to benefit future years,” the group’s chief executive Warren East commented in the statement, adding, however, that news updates around the Paris Airshow “are increasingly expected to reflect our transition from a period of above-trend order book growth to one of operational delivery”.
East has been trying to turn the British engine maker around following a string of profit warnings, a record loss last year, as well as a bribery scandal.
In a separate development, Rolls-Royce announced that it had appointed Beverly Goulet as a non-executive director with effect from July 3. She has most recently been serving as a senior executive with American Airlines Group from which she will retire at the end of the current month.
“Beverly has deep functional expertise in finance, strategy and in legal and governance matters and she knows the airline industry extremely well,” Rolls-Royce’s chairman Ian Davis said in a statement. “I believe she will be a valuable and committed member of the Board and will bring very relevant expertise and experience to our decision making.”