Rolls-Royce burning platform

2023 - 1 - 28

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Image courtesy of "BBC News"

Rolls-Royce is a burning platform, claims new boss (BBC News)

Tufan Erginbilgic told staff they faced their "last chance" to turn the engineering company around.

Covid created a crisis, but the issue in hand has nothing to do with it," Mr Erginbilgic said. "It has nothing to do with Covid, let's be very clear. Rolls-Royce is one of the UK's flagship companies. A spokesman for Rolls-Royce said Mr Erginbilgic "laid out his priorities for all of us and stressed the need for everyone within the business to work together in order for Rolls-Royce to succeed". But in a broadcast to staff, Mr Erginbilgic said Rolls-Royce had "not been performing for a long, long time". The new boss of Rolls-Royce described the engineering giant as a "burning platform" and said the company's performance is "unsustainable".

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Image courtesy of "The Guardian"

Rolls-Royce is a 'burning platform' that must transform, says new CEO (The Guardian)

'We underperform every key competitor out there,' staff are told in global address by Tufan Erginbilgic.

Covid created a crisis but the issue in hand has nothing to do with it. “Rolls-Royce has not been performing for a long, long time; it has nothing to do with Covid, let’s be very clear. “[It isn’t] sustainable,” Erginbilgic said, in excerpts of a speech shared with the Financial Times. “We underperform every key competitor out there,” Erginbilgic said in an address at Rolls-Royce’s UK manufacturing site at Derby, which was broadcast to staff globally. [almost a fifth of staff](https://www.theguardian.com/business/2020/may/20/rolls-royce-to-cut-9000-jobs-worldwide-as-covid-19-takes-toll), in a £1.3bn cost-cutting drive as Covid grounded the aviation industry. [at the start of January](https://www.theguardian.com/business/2022/jul/26/rolls-royce-tufan-erginbilgic-chief-executive-bp-warren-east), said the coronavirus pandemic could not be blamed for what in reality was a perennial underperformance of the business compared with rivals.

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Image courtesy of "ShareCast"

Rolls Royce chief says company is a 'burning platform' (ShareCast)

Rolls Royce's new boss told staff the engineering group was a "burning platform".

16:39 27/01/23 17:09 27/01/23 16:33 27/01/23

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Image courtesy of "Proactive Investors UK"

FTSE 100 up, Rolls-Royce a 'burning platform' - Market Report (Proactive Investors UK)

The FTSE 100 opened higher this morning, building on yesterday's gains. Cash and carry giant Bestway Group has taken a 3.45% stake in Sainsbury's, ...

Cash and carry giant Bestway Group has taken a 3.45% stake in Sainsbury’s, with both sides playing down any rumours of a takeover. And among the small cap, exploration group Bradda Head Lithium was also up as it told investors it had appointed a Canadian broker to aid plans to boost its presence in North America. Rolls-Royce boss Tufan Erginbilgic has described the engineering giant as a ‘burning platform’, warning employees of the need for some drastic changes.

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Image courtesy of "Reuters"

Rolls-Royce slumps as new CEO warns of 'last chance' to change (Reuters)

Shares in Rolls-Royce fell as much as 4% on Friday after its new CEO warned staff the aerospace company, Britain's premier blue-chip engineering group, ...

Britain owns a golden share in Rolls-Royce, meaning the government can block a takeover. Shares in Rolls-Royce, which before the Financial Times report were at their highest for about a year, lost 4% in morning trading. Register for free to Reuters and know the full story The arrangement reflects the importance of the company to the UK's military capability. Rolls-Royce, whose engines and systems are used on the Airbus A350 and Boeing 787 as well as ships, submarines and in power generation, said the CEO had spoken to staff about "the need to significantly improve the performance of Rolls-Royce". According to the Financial Times, Tufan Erginbilgic told staff at Rolls-Royce's main British site in Derby, central England, that the company's performance was "unsustainable" and it faced a "last chance" to change.

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Image courtesy of "The Irish Times"

Rolls-Royce's new chief warns company is a 'burning platform' (The Irish Times)

Tufan Erginbilgic delivers bleak assessment to employees on future of UK engineering group.

While it has been held back by the slow recovery in long-haul travel, analysts have predicted the reopening of China will be a positive catalyst. Covid created a crisis, but the issue in hand has nothing to do with it. Although the company is on course to have met its 2022 targets for revenue growth and “modestly positive” free cash flow, its balance sheet remains laden with debt. Rolls-Royce has not been performing for a long, long time, it has nothing to do with Covid, let’s be very clear. In a global address broadcast to staff, parts of which were shared with the Financial Times, Tufan Erginbilgic warned that investors were losing patience with the FTSE 100 group. Speaking at Rolls-Royce’s UK manufacturing site at Derby, Mr Erginbilgic described the company as a “burning platform”.

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Image courtesy of "This is Money"

MARKET REPORT: Chief's 'burning platform' jibe rattles shares in ... (This is Money)

Tufan Erginbilgic told employees that investors were getting fed up with weak performance, driving shares down 2.9 per cent, or 3.28p, to 110.2p.

Shares, however, fell 0.3 per cent, or 2p, to 625p. The package holiday group reported that the total value of transactions in the last three months of 2022 were ahead of the same period in 2021. [Stocks & shares IsaStocks & shares IsaEasy investingCapital at risk. The group added that its UK production capacity should at least double once a new facility is completed towards the end of this year. Covid created a crisis, but the issue in hand has nothing to do with it.' Shares rose 1 per cent, or 6 per cent, to 591p. Bookings since Christmas were more than two-thirds higher than last year, On The Beach added. Serica Energy added 3.1 per cent, or 7.5p, to 252p after most of the North Sea producer's shareholders voted in favour of its proposed takeover of rival oil and gas business Tailwind Energy at the general meeting. The FTSE 100 edged up 0.05 per cent, or 4.04 points, to 7765.15 and the FTSE 250 rose 0.6 per cent, or 119.88 points, to 20035.39. 'Rolls-Royce has not been performing for a long, long time, it has nothing to do with Covid, let's be very clear. Shares in the blue-chip commercial property developer gained 0.9 per cent, or 6p, to 707.4p. BP rose 1.1 per cent, or 5.1p, to 489.3p and Shell climbed by 1.2 per cent, or 29p, to 2370.5p.

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Image courtesy of "Telegraph.co.uk"

Rolls-Royce's scandalous demise is a national tragedy that shames ... (Telegraph.co.uk)

There is urgent need for a credible industrial strategy to get the UK back on its feet.

There is an urgent need for a credible industrial strategy to help the country back on its feet. The big question is what Erginbilgic plans to do about it all. It is a scandal that shames the entire establishment, starting with a historically supine board. With East reduced to constantly fighting fires, Rolls has never confronted the existential crisis at its heart. Nor can the Government escape culpability. Having come from the private equity industry, one hopes Rolls isn’t about to face another round of cost cuts and job losses. Unfortunately that was how he left it too, despite seven years of toil. It doesn’t sound like there will be much room for snowflakes under the new regime. Erginbilgic also went on to say that “every investment we make, we destroy value”. And Frew succeeded Sir Ian Davis, who lacked presence. His predecessor Sir John Rose walked on water. East’s entire tenure was almost onelong battle for survival.

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