Rolls-Royce Highlights Ongoing Concerns Over Supply Chain Disruptions
Rolls-Royce Holdings Plc acknowledges that supply chain disruptions remain a significant operational challenge, echoing concerns expressed by other manufacturers such as Airbus and Boeing. The company, which produces engines for Airbus A350 aircraft, maintains its full-year projections for underlying operating profit and free cash flow. However, Rolls-Royce emphasizes that the aviation industry continues to face difficulties in output due to a lack of spare parts, skilled labor, and disruptions caused by sanctions against Russia, a key supplier of components.
Despite the challenges, Rolls-Royce's CEO, Tufan Erginbilgic, has initiated a transformation program within the company to address these issues. While the supply chain disruptions are not expected to impact the company's financial forecast for 2023, Erginbilgic acknowledges the need to reduce the company's high debt and emphasizes the urgency with which they are approaching this matter.
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