Cost cuts, asset sales keep Rolls-Royce on track despite weak travel

LONDON, Aug 5 (Reuters) – Rolls-Royce (RR.L) is on track to meet its forecasts for this year as cost cuts and asset sales help the British engine-maker weather a slow recovery in long-haul travel, it said on Thursday.

At the height of the pandemic last year, revenues at Rolls’s civil aviation unit, its biggest business, tumbled as airlines stopped flying, resulting in a perilous few months before the company raised more cash and secured loans.

Raising 2 billion pounds ($2.8 billion) from asset sales is key to repairing its finances, and Rolls said on Wednesday it was in exclusive talks with a buyer for its ITP Aero unit, for a reported 1.6 billion euros ($1.9 billion).Read more