A Rolls-Royce Trent 700 engine for the Airbus A330 is parked in the workshop of N3 Engine Overhaul Services GmbH. The company is a joint venture between Lufthansa Technik AG and Rolls-Royce and is dedicated to aircraft engine maintenance.
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shares rolls royce The company’s shares rose more than 11% on Thursday to hit a record high as the company resumed dividend payments and raised its profit forecast due to strong first-half results.
The stock’s gains eased slightly, rising 8.8% as of 8:24 a.m. London time.
The British aerospace and defense company reported underlying profits of 1.1 billion pounds ($1.4 billion) in the first half of this year and said it expected the figure to rise to 2.1 billion to 2.3 billion pounds in 2024, beating market expectations.
The company said it will resume dividend payments throughout 2024, with a starting dividend payout rate of 30% of basic profits after tax.
Chief Executive Tufan Erginbilgic, who took over the reins of the company in 2023, said the strong results showed the company’s plans for planning, optimization and cost efficiency were taking shape.
“Our transformation of Rolls-Royce into a high-performing, competitive, resilient and growing business is underway at speed and depth. In a challenging supply chain environment, we are expanding the profitability of the business and cash potential, we are actively managing this supply chain environment.
Erginbilgic added: “These results, along with our enhanced financial resilience, give us the confidence to increase our 2024 guidance and resume shareholder distributions for full-year 2024 results.”
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