Rolls-Royce Holdings PLC (LON:RR.) shares pushed higher today sfter the engines maker said that 2017 has started with all its businesses performing in line with expectations.
In a statement issued ahead of meetings with investors over the next two weeks, principally at the Paris Airshow, the FTSE 100 group said its expectations for first half revenue, profit and free cash flow remain unchanged from that provided at its AGM in May.
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It added that full year expectations for revenue, profit and free cash flow are also unchanged from those outlined in February 2017.
Rolls-Royce said: “Looking at the year as a whole, against a backdrop of mixed market conditions, we remain focused on the delivery of our engine production ramp up, the continued execution of our transformation programme and growing our free cash flow.”
It added: “Our guidance at this stage of the year is unchanged. If rates remain unchanged from those seen recently, the impact of the average year-on-year movement on the translation of our overseas subsidiaries results would improve full year reported revenues by around £400mln and improve reported profit before tax by around £50mln.”
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Warren East, Rolls-Royce’s chief executive said: “News updates around events such as the Paris Airshow are increasingly expected to reflect our transition from a period of above-trend order book growth to one of operational delivery.
“Our ramp up in large engine production is progressing well, reflecting the significant investments in manufacturing capability in recent years.”
In early morning trading, Rolls-Royce shares were 1.1%, or 9.5p higher at 904.5p.
In a note to clients reiterating a ‘hold’ rating on Rolls-Royce, Liberum Capital analyst Ben Bourne said: “Operational delivery is now key. The stock looks expensive on most near term valuation metrics.
“Bulls need to hang on to the promise of better cash generation in outer years.”
Separately, Rolls-Royce also announced the appointment of Beverly Goulet, at present a senior executive with American Airlines Group Inc (NYSE:AAL), as a non-executive director.
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