Rolls-Royce posts hefty loss in the first half of 2020
The board won't recommend an interim shareholder payment for 2020 due to the coronavirus pandemic
Stocks impacted: Rolls-Royce Holdings PLC (RR)
The U.K. engineering company reported a loss before tax of 5.37 billion pounds for the half-year ended 30 June 2020. Loss per share was 280.06 pence compared to a loss of 48.02 pence. Rolls-Royce made an underlying operating loss of 1.7 billion pounds, compared to a profit of 203 million pounds in 2019. Revenue slumped 24% to 5.5 billion pounds, being battered by global air travel bans in the first half of the year. The Group expects underlying revenue in 2020 to be approximately 25-30% lower than the prior year. Citing the crisis, the company announced plans to cut 9,000 of its 52,000 staff earlier this year. Yesterday, Rolls-Royce announced the closure of one of its factories in Nottinghamshire. Besides, the company said the board won't recommend an interim shareholder payment for 2020 due to the coronavirus pandemic. After the report, Rolls-Royce shares shed over 7% during the European hours.
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