Skip to main content

RR Chief has given a brutal assessment.

 The new chief exec­ut­ive of Rolls-Royce has given a bru­tal assess­ment of Bri­tain’s flag­ship engin­eer­ing group, telling employ­ees that it must trans­form the way it oper­ates or it will not sur­vive.

Rolls Royce

In a global address broad­cast to staff, parts of which were shared with the Fin­an­cial Times, Tufan Ergin­bil­gic warned that investors were los­ing patience with the FTSE 100 group.
"Every invest­ment we make, we des­troy value," he told employ­ees, adding that fin­an­cially, "we under­per­form every key com­pet­itor out there".
Elop, who also warned staff that the com­pany was stand­ing on a "burn­ing plat­form". Less than three years later, the nearly 150-year-old Finnish com­pany was sold to Microsoft.
Ergin­bil­gic said: "We do have a burn­ing plat­form, not because I say so but because of what I am going to share with you." The com­pany’s per­form­ance was "unsus­tain­able", he said.
Rolls-Royce’s recent his­tory is one of suc­cess­ive restruc­tur­ings. The com­pany is only just emer­ging from a sweep­ing over­haul launched by East in the wake of the pan­demic, includ­ing the loss of 9,000 jobs, to save £1.3bn in costs.
Although the com­pany is on course to have met its 2022 tar­gets for rev­enue growth and "mod­estly pos­it­ive" free cash flow, its bal­ance sheet remains laden with debt. Its shares have risen 22 per cent since the start of Janu­ary to 114p but remain far below their pre­pan­demic high of 337p.
The com­pany said that its new chief had been dis­cuss­ing "the need to sig­ni­fic­antly improve the per­form­ance of Rolls-Royce".
Labels:

Comments

  1. Liam27 January 2023 at 10:44

    Could we see the end of Rolls Royce in the next 2 years? Seeing what is happening in the world, I wouldn’t exclude it.

    ReplyDelete
    Replies
    1. Evan27 January 2023 at 12:06

      I don't want to think this is possible. Losing such a brand would be very bad for everyone. I hope they recover. They need to cut down costs and then, maybe they can survive. Hopefully they take drastic measures now, improving performance and reducing costs, so they can get through the year.

      Delete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

Tariffs on UK electric cars.

  The European Commission has confirmed that it will continue with its plan to impose tariffs on electric cars exported between the UK and EU starting next year. This is due to the "rules of origin" requirement that mandates EVs traded across the English Channel to have 60% of their battery and 45% of their parts sourced from the EU or UK or face a 10% tariff. A senior Commission official, Richard Szostak, recently informed parliamentarians from the UK and EU that the bloc's battery investment has significantly declined, making the tariffs necessary to encourage domestic production. In 2022, the EU's share of global investment in battery production shrank from 41% to only 2% after the US offered substantial subsidies through its Inflation Reduction Act. Starting in 2024, car manufacturers in the UK will need to have 22% of their sales come from zero-emission vehicles, which means they may need to import EVs from the continent to meet this requirement. If EU carmakers ...
Post a Comment
Read more