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Rolls-Royce sees free cash flow topping £1B guidance in 2020

Published 06/15/2018, 11:02 AM
© Reuters.  Rolls-Royce sees free cash flow topping £1B guidance in 2020
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  • Rolls-Royce (LON:RR) (OTCPK:RYCEF, OTCPK:RYCEY) shoots higher after pledging to boost cash flow even as it grapples with the rising costs of fixing its Trent 1000 engines that power Boeing (NYSE:BA) 787 Dreamliners.
  • Shares rose as much as 8% in U.K. trading after Rolls said it would exceed its 2020 guidance for free cash flow of £1B, possibly reaching £1.2B ($1.6B).
  • “The company’s new mid-term ambition of more than £1/share in free cash flow implies more than £1.8B in total free cash flow. This is well ahead of 2020 company compiled consensus,” according to Goldman Sachs (NYSE:GS) analysts.
  • Rolls says belt tightening will allow it to maintain FY 2018 guidance of £350M-£550M million in free cash flow before restructuring costs.
  • The company said yesterday that it would incur £500M in restructuring costs through 2020 associated with 4,600 job cuts.
  • Now read: Dreamliner Drama Unfolding?


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