The CEO of Rolls-Royce has called the company a "burning platform.
" The U.K.'s leading engineering group is struggling to recover after pandemic-era air travel curbs harmed its aerospace business.
More:
- CEO Tufan
Erginbilgic said Rolls-Royce's performance was “unsustainable” as he
delivered a global address to staff from the company's manufacturing
site at Derby.
- Erginbilgic was tasked with improving the company's performance after he took over from Warren East as CEO earlier this month.
- Rolls-Royce's
civil aerospace division, which builds and maintains aircraft engines,
took a major hit when air travel was grounded during the pandemic
lockdowns.
- The division generates most of its revenue from the hours that its engines are in the air.
- Erginbilgic noted that the division was failing to generate profit even before the pandemic hit.
- He said that businesses generating low returns should not be in the company's portfolio.
Zoom Out:
- Rolls-Royce implemented a major job reduction program in 2018 and was forced to cut a further 9,000 jobs in 2020 due to the effects of the pandemic.
- The company is expected to have met its revenue growth targets for 2022 but remains burdened by debt.
