Rolls-Royce chief expects continuing supply chain problems

Tufan Erginbilgic, CEO of Rolls-Royce has warned that he expects supply malaise to continue for a while.

In order to deal with the uncertainty, the company has built up its inventory to meet demand in the civil aerospace sector to counter further supply chain disruption.

Speaking during the Rolls-Royce half-year briefing on 3rd August, Erginbilgic said that the V-shaped post-pandemic recovery means that the gas turbine supply chain and civil aerospace will not stabilise ‘any time soon’.

However, the company remains hopeful that supply will stabilise eventually.

In the company’s half year results, it stated that due to its ‘pricing actions’ concerning its Civil and Defence divisions, it expects an improvement in profits in the second half of this year.

The company has previously experienced fires at its facilities costing £150 million, but has attempted to mitigate some of the damage to prevent further losses.

The company’s civil aerospace division turned in half-year operating profit of £405 million, on revenues of £3.25 billion.

Source: logisticsmanager.com