Rolls-Royce reportedly manages inflation and supply chain disruptions

Rolls-Royce (OTC:RYCEY) said Thursday it is managing with rising prices and supply chain interruptions. A rise in its constricted profit margin in the second half will keep it on track to meet its targets.

Rolls-Royce (OTC:RYCEY) said on Thursday that it was coping with rising inflation and supply chain disruptions, and that an increase in its compressed profit margin in the second half would keep it on pace to fulfill its objectives.

In the first half of the year, the engine manufacturer recorded an underlying operating profit of 125 million pounds ($152 million), compared to 307 million pounds a year earlier, on underlying revenue of 5.31 billion pounds.

Rolls-Royce Chief Executive Warren East, who will be succeeded by ex-BP executive Tufan Erginbilgic at the end of the year, stated that the company had “progressed well” in the first half, with an increase in free cash flow of over 1 billion pounds and robust order intake in its power systems division.

He stated in a statement, “We are aggressively addressing the effects of a variety of difficulties, including increasing inflation and continued supply chain disruption, with a stronger emphasis on price, productivity, and expenses.”

During the time, the company’s major engines covered by long-term service agreements flew 4.5 million hours, a 43 percent increase year-over-year but still only 60 percent of pre-pandemic levels in 2019.

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