Rolls-Royce crashes after losing $7 billion in first half

August 27, 2020 15:30

Rolls-Royce Holdings Plc (#RR) shares fell in the first hours of the London Stock Exchange session by more than 7% after announcing that in the first half of 2020 it registered a loss of 5,400 million pounds (7 Billion dollars).

The company has explained in a press release that these losses are a consequence of the collapse in demand in the airline sector due to the coronavirus pandemic, which has also led to the cancellation of currency hedging contracts that will no longer be necessary as sales decline.

To mitigate the effect of these losses, the company, whose main business is the jet engines division, has announced several measures to cut expenses and capture revenue.

These include:

  • Raising at least 2 billion pounds with the sale of assets, including ITP Aero, a world leader in the aeronautical and industrial engines market.
  • Cutting 4,000 jobs from the 9,000 planned to deal with Covid-19.

The company announced its results on the same day that its CFO Stephen Daintith was known to leave to take the same position at the food company Ocado.

Source: Admiral Markets MetaTrader 5. Daily Rolls-Royce chart. Data range: from December 30, 2019, to August 27, 2020. Prepared on August 27, 2020, at 10 am. Keep in mind that past results do not guarantee future returns.

Rolls-Royce shares have accumulated a loss on the stock market this year of more than 63% and are currently supported around the support of 240 GBX, a minimum that has not been touched since the previous financial crisis, in 2008. In the last five years it has lost 64%. In 2015, it fell by 33%; in 2016, it managed to recover 16%; in 2017, it was up 27%; in 2018, it fell slightly, 2%, and in 2019 it lost almost 18%.

If you want to start trading Rolls-Royce or any other share using CFDs, just click on the following banner and open a live account:


The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter "Analysis") published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:

1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.

2.Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such decision, whether based on content or not.

3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.

4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter "Author") based on personal estimates.

5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.

6. Any past performance or modeling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset's value is not guaranteed.

7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.

Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.