Rolls-Royce boss Warren East is to step down after seven-years leading the firm as the engineering giant announced a rebound in profits today and the completion of a series of sweeping job cuts.
The firm said it had completed its cost-cutting restructuring a year ahead of schedule and had put £1.3bn savings back on the balance sheet.
But shares in the firm plummeted more than 14 per cent this morning following the news of East’s departure and wider jitters across markets, as Russian aggression in Ukraine led to a plunge in the FTSE 100.
Revenues for Rolls Royce hit £11.2bn in 2021, with the firm’s civil aerospace division recording a jump to £4.5bn.
Bosses said they were now looking to position the division for growth as international travel rebounds from a pandemic slump.
Outgoing chief executive Warren Eats said: “We have improved our financial and operational performance, continued to deliver on our commitments and created a better balanced business capable of sustainable growth.
“We have achieved the benefits of our restructuring programme a year ahead of schedule, positioning Civil Aerospace to capitalise on increasing international travel.
The group’s defence division recorded a boost in revenues to £3.3bn which bosses said had been driven by strong demand across markets and a range of new contracts including new work for the “coming decades” in the US.
Rolls Royce is now gearing up for growth and said the outlook for 2022 was positive despite the challenges and risks around around the pace of market recovery.
The firm said it had invested £1.2bn in research and development as it readies itself for growth, as well as channelling cash into net-zero investments which would “deliver long-term sustainable value”.