Rolls Royce, manufacturer of engines for Airbus and Boeing, announced a net loss of 5.4 billion pounds (6 billion euros) in the first half of 2020, the group being especially affected by the air transport crisis caused by the coronavirus pandemic.
The British supplier had posted a lower loss, of 909 million pounds, a year earlier: it was then plagued by technical problems on some engines. This year, it is feeling the impact of the stoppage of air traffic during containment and a recovery that is expected to be very slow.
This civil aviation crisis means for Rolls-Royce fewer orders and less maintenance activity, which will permanently reduce its turnover, which has already fallen by 26% to 5.8 billion pounds on the semester 2020, according to a press release. " We reacted quickly to increase our liquidity (…) to help us deal with the lingering uncertainty about the recovery in the civil aviation sectorGroup chief executive Warren East commented on Thursday after the first half results announcement.
Rolls-Royce, one of Britain's largest industrial groups, expects a very slow recovery in its aerospace industry, estimating that engine orders will remain below 2019 levels through the middle of the decade. The engine manufacturer has taken a series of measures to try to weather the storm, including the largest restructuring in its history of its aeronautical branch, which involves the elimination of 9,000 jobs, or 17% of the total workforce of 52,000 people.
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