- Rolls-Royce stock has fallen from 116.75 pence to 111.30 pence in the past six months
- Annual cost savings of more than £ 1.3 billion targeted by the end of 2022
- Rolls-Royce Group hopes for positive cash flow by the second half of 2021
- Are you ready to trade the Rolls-Royce stock price? Open an account today
Are Rolls-Royce stocks faltering while the aviation industry holds its breath?
The Rolls Royce
The stock price is up 9.69% last month but remains down 4.90% over the past six months. That was the steep recovery of Rolls-Royce shares between October and December 2020, the price rose from a low of 38.98 pence to 134.90 pence.
However, since the turn of the year Rolls-Royce shares have been rather restrained. It gave off some of those H2 2020 gains by dropping to 91.70 pence in late January 2021.
Since then, the price has traded in a narrow range between 100p and 110p. This is largely due to the persistent uncertainty in the aviation industry as the travel sector waits for the green light to fully reopen its borders. Sales of new aircraft engines have also stalled as airlines try to optimize their fleets.
Will the fully electric “Silent Shadow” of the luxury brand usher in a new era?
Rolls-Royce’s ultra-luxury automobile brand could be one of the bright spots for business this year. In addition to the latest contract with DHL, the group confirmed last month that it had started work on a new all-electric vehicle that will be available to its customers this decade.
The “Silent Shadow” model, already patented by the German Patent Office, pays homage to his Silver Shadow vehicle from the 1960s and 1970s. CEO Torsten Müller-Ötvös believes that electrification “fits Rolls-Royce perfectly”, as the brand “is not known for loud engines and exhaust noises”.
Rolls-Royce opens the world’s largest test facility for aircraft engines
The Covid-19 pandemic has resulted in Rolls-Royce reducing its engine production, resulting in thousands of job cuts. However, the company wants to preserve its world-leading legacy in engine manufacturing with the opening of a new £ 90 million aircraft engine test facility in Derby.
The FTSE 100-listed group believes the new facility will promote sustainable aviation for decades to come and help the company evaluate the performance of its long-range passenger jet engines. Nicknamed the “Testbed 80” project, the project will help Rolls-Royce compete with General Electric and Pratt & Whitney at the forefront of aircraft engine manufacturing.
In the defense industry, Rolls-Royce is also waiting for the outcome of its tender for the new B-52 engine program with the US Department of Defense. Meanwhile, the UK government has committed £ 2 billion in funding for Rolls-Royce to participate in a new Future Combat Air System.
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