Warren East, Rolls-Royce
Rolls-Royce saw profits rise by almost 150% during the half year ended 30 June despite facing a series of challenges along the way.
The global engineering group recorded profit before tax of £1.94m for the first half of the year, up from a £2.1m loss for the same period last year.
This growth was driven by a rise in orders for its civil aerospace engines and power systems and chief executive Warren East is confident about the next six months.
East said: "Rolls-Royce delivered encouraging year-on-year operational progress in the first six months of the year.
“Civil aerospace large engine deliveries increased 27% and we made good further progress improving Trent XWB OE economics. Restructuring savings were ahead of plan.
“Together with a higher than expected benefit from long-term contract accounting adjustments, this resulted in a good set of results, with financial performance ahead of our expectations for the first half.
“Looking to the balance of the year, execution and delivery of a number of important milestones across our businesses will be key to achieving our full year expectations. Our outlook for full year profit and cash remains unchanged."
The past six months haven’t come without challenges for Rolls-Royce either.
As well as a slowdown in the marine and oil and gas sectors, the group has also been caught up in a huge bribery scandal which had a massive impact on the company’s reputation.
However, two years into his tenure, East has managed to steer the group through these turbulent times and is all too aware that there is no room for complacency.
He added: "Two years ago we set out a programme of change at Rolls-Royce to drive efficiency and sharpen our focus on execution.
“Our strengthened management team is making good progress in simplifying the organisation and driving the pace of necessary change to develop a more resilient and sustainable business.
“However, this is no time for complacency. Strong execution and a focus on delivering our customer commitments remains essential as we continue to manage in-service issues in civil aerospace alongside key new product introductions and increased production volumes.
“Our long-held commitment of investing in R&D and future technologies remains unchanged, as we look to secure the long-term success of the business, built on a solid platform of outstanding customer service and strong cash flows."