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Rolls-Royce shoots its losses in 2020, up to 3.698 million due to the pandemic

Holds conversations with potential buyers of the Spanish ITP Aero

The British manufacturer of engines for the aerospace industry Rolls-Royce recorded losses of 3.170 million pounds sterling (3.698 million euros) in 2020, thus expanding by 141% the ‘red numbers’ of 1.315 million pounds (1.534 million euros) ) accounted for by the company in 2019 as a consequence of the impact of the Covid pandemic on its activity, particularly in the airline sector.

The company, which last May announced a profound reorganization of its business to adapt its activity to the new levels of demand as a result of the difficulties facing the commercial aviation sector, specified that in 2020 7,000 of the 9,000 jobs planned.

“We have taken decisive action to improve our financial resilience and permanently improve our operational efficiency, resulting in an unfortunate but much-needed reduction in the size of our workforce,” said Warren East, CEO of Rolls-Royce. .

Rolls-Royce’s turnover in 2020 fell by 28.7% year-on-year, to 11,824 million pounds (13,793 million euros), with a fall in the underlying revenue of the civil aviation business of 37%, to 5,089 million pounds. pounds (5,936 million euros), and 14% in the area of ​​electrical systems, with 2,745 million pounds (3,202 million euros),

The defense business grew by 4%, to 3,366 million pounds (3,926 million euros) and ITP Aero had a 25% lower turnover, to 705 million pounds (822 million euros).

Regarding the Spanish company, Rolls-Royce highlighted the strong impact of the crisis due to its significant exposure to the civil aviation sector, which represents around 70% of its business, although it expressed its confidence in a stabilization in 2021, followed by a recovery from 2022.

Likewise, in relation to the ongoing cost saving process, which includes a 15% reduction in the workforce in the subsidiary compared to staff levels in 2019, the multinational indicated that it expects to complete the process at the end of the first half of 2021, while he highlighted the progress made in the process of selling ITP Aero, for which he has conversations with several potential buyers.

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