Rolls Royce(US:RYCEY)2019-08-06 19:34Financial Performance - Underlying core revenue increased by 7% to £7.2 billion[9, 41] - Underlying core operating profit increased by 33% to £203 million[9, 41] - Core free cash flow was £(391) million, compared to £10 million in H1 2018[10] - The company aims for >£1 free cash flow per share[13] - The company is committed to restoring shareholder payments as FCF grows and aspires to a mid-term dividend cover of 2.5x through the cycle[15] Business Unit Performance - Civil Aerospace underlying revenue increased by 11% to £4.018 billion, with an operating loss of £(21) million[41, 83] - Power Systems underlying revenue increased by 6% to £1.553 billion, with operating profit increasing by 20% to £96 million[41, 85] - Defence underlying revenue increased by 2% to £1.494 billion, with operating profit increasing by 2% to £173 million[41, 87] - ITP Aero underlying revenue increased by 23% to £457 million, but operating profit decreased by 18% to £32 million[41, 91] Trent 1000 Update - Cash cost in H1 2019 for Trent 1000 was £219 million, compared to £107 million in H1 2018[26] - Incremental cash cost increase for Trent 1000 pack B/C is expected to be £450 million - £500 million in 2019, declining by £50 million - £100 million in 2020[28] Restructuring and Cost Savings - Run-rate cost savings of £134 million per annum have been achieved to date through restructuring[12, 21] - Cumulative net headcount reduction is approximately 1,600[21] Guidance - FY 2019 core free cash flow is guided at £700 million +/- £100 million[97, 98] - Civil Aerospace revenue is expected to grow around 10%[101] - Power Systems revenue is expected to grow by mid-single digits[102] - ITP Aero revenue is expected to grow around 10%[104]