Rolls-Royce shares increase by 19 per cent after company’s turnaround plan delivers better results

Rolls-Royce shares soared 19 per cent on Monday (July 24) after the engine maker raised its guidance for the full year. The company now expects underlying operating profit to be in the range of £1.2 billion ($1.56 billion) to £1.4 billion ($1.81 billion), up from a previous guidance of £0.8-1 billion ($1.04-1.30 billion). 

The company’s CEO Warren East said that the improved guidance was due to “stronger-than-expected” demand for its products and services. He also said that the company was “making good progress” on its transformation plan. The news of Rolls-Royce’s improved guidance was met with relief by investors, who had been concerned about the company’s recent performance. The company’s shares had fallen by more than 40 per cent in the past year.

The improved guidance suggests that Rolls-Royce is on the right track to recovery. However, the company still faces a number of challenges, including the ongoing grounding of the Boeing 737 MAX. Despite these challenges, the news of Rolls-Royce’s improved guidance is a positive sign for the company and its investors.

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