Mega Loss of Engine Maker Rolls-Royce Due to Corona Crisis

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The British Rolls-Royce, the maker of aircraft engines, has suffered a loss of billions as a result of the corona crisis.

 

Due to the virus outbreak, airlines cancelled their orders for new aircraft, and there was less demand for new engine parts and Rolls-Royce maintenance services.

The loss amounted to more than £ 5.4 billion in the first six months. About 6 billion euros convert this. The loss was partly due to accounting depreciation.

Underlying sales fell by more than a quarter to £ 5.6 billion.

Rolls-Royce wants to sell parts to cope with the slump that will probably continue for some time. In addition, the Spanish engine and parts division ITP Aero is the first to be nominated to be sold.

Rolls-Royce is also in the process of closing sites and cutting jobs.

Chief executive Warren East, who had already warned that the aircraft engine business could shrink by a third, says 4,000 jobs have been cut so far, out of a potential 9,000 that may need to disappear.

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