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LONDON: British aerospace giant Rolls-Royce on Thursday (27 August) recorded a massive loss for the first part of 2020 when the coronavirus outbreak grounded aircraft around the world and caused a crisis in air travel.
Rolls, which operates in the air, defense and electrical sectors, recorded a loss of 5.4 billion pounds ($7.1 billion) in the six months ending in June.
He also unveiled a 2 billion pound asset disposition program from his ongoing review.
The disastrous functionality of the first part compared to a loss of 909 million pounds last year, added in one of the results.
The company, whose products are used for Airbus and Boeing aircraft, has also increased its liquidity to manage the adverse consequences of the current global fitness emergency.
“The Covid-19 pandemic has particularly affected our functionality in 2020, with an unprecedented effect on the civil aviation industry with ground flights around the world,” Chief Executive Warren East said in the impact statement.
“We reacted temporarily to increase our liquidity, with 6.1 billion pounds at the end of the first half and some other 2 billion-pound forward loan agreed at the moment, to succeed over the uncertainty about the timing and form of recovery in the civil aviation sector.
“We have made progress in our restructuring, which includes the largest reorganization of our civil aerospace business in our history.
Rolls-Royce has been affected by the pandemic of leaving international passenger planes on the ground and forcing airlines to cut thousands of jobs and cut costs.
Rolls did the same, and in May said it was cutting 9,000 jobs, or 17% of its global workforce.
On Thursday, he said he hoped to raise more money by selling assets to weather the recession.
“While our movements have helped ensure the group’s rapid long term, we recognize the significant uncertainties that result from COVID-19 and the desire to rebuild our long-term balance sheet. We have known a number of possible divestments that are expected to generate revenue, more than 2 billion pounds.
“In addition, despite ongoing uncertainty in the civil aviation sector, we continue to compare additional features of our balance sheet to allow us to leave the well-placed pandemic to capitalize on long-term opportunities in all of our markets.
The organization has spent more than two years cutting thousands of seats due to the low demand for its electrical systems used in the marine industry.
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