27th Jan 2023 09:18
(Alliance News) - The new chief executive of Rolls-Royce Holdings PLC has warned staff on the future of the engineering group, the Financial Times reported.
The FT said Chief Executive Tufan Erginbilgic, in a global address broadcast to employees, emphasised the importance to change the way the FTSE-100 firm operates, or risk investors losing patience.
He told staff: "Every investment we make, we destroy value. We underperform every key competitor out there."
Erginbilgic also described the company's performance as "unsustainable".
He said: "It is at a level [at which] it cannot continue. Rolls-Royce has not been performing for a long, long time, it has nothing to do with Covid, let's be very clear. Covid created a crisis, but the issue in hand has nothing to do with it. Given everything I know talking to investors, this is our last chance."
https://www.ft.com/content/778674da-f228-4882-aa7b-41357bbbb8f9
Rolls-Royce named Erginbilgic as its new CEO back in July.
The company made revenue of GBP5.60 billion in the six months ended June 30, up from GBP5.15 billion a year earlier. But it swung to a hefty pretax loss of GBP1.75 billion from a profit of GBP114 million.
Shares in Rolls-Royce were down 1.2% at 112.08 pence each on Friday morning in London.
By Xindi Wei, Alliance News reporter
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