Rolls-Royce said its turnaround plan was starting to deliver as the British engineering group raised its profit forecast for the year after a better than expected performance in the first half, sending shares in the group up by more than 15 percent.
The FTSE 100 company, which produces engines for some of the world’s largest commercial aircraft, said on Wednesday that it expected underlying operating profit to be £1.2bn-£1.4bn this year, up from a previous expectation of £0.8bn-£1bn. Analysts had forecast £934mn.
The company, which makes most of its money from servicing and maintaining engines, said higher volumes and commercial improvements, as well as cost efficiencies in its civil and defence units, helped drive performance.
Shares in Rolls-Royce rose 18.6 per cent in early trading on Wednesday. The company is due to report half-year results next week.
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