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Rolls-Royce shares rise 8% as 2023 profits more than double
A Rolls-Royce jet engine on display at the Rolls-Royce aircraft jet engine manufacturing and repair facility in Blankenförde, near Berlin, Germany, on February 28, 2023.
Omer Messenger | Getty Images News | Getty Images
Rolls-Royce shares rose more than 8% in early trade in London after the British aerospace group more than doubled its annual profit in 2023 and expected further momentum this year.
Rolls-Royce, which makes jet engines for commercial aircraft and power systems for ships and submarines, reported underlying operating profits of £1.6 billion ($2 billion) in 2023, compared to £652 million in 2022. That’s more than double the million pounds.
“Our transformation has led to record performance in 2023, driven by commercial optimization, cost efficiencies and progress on strategic initiatives,” CEO Tufan Erginbilgic said in a statement. ” he said.
“This significant change was achieved across all of our divisions despite a volatile environment including geopolitical uncertainty, supply chain challenges and inflationary pressures.”
The group expects underlying operating profit growth to be at least 6% in 2024, with full-year figures expected to be in the range of £1.7bn to £2.0bn.
Rolls-Royce was the top performer on Britain’s FTSE 100 index in 2023, surging more than 200% on the back of higher profit forecasts and an announcement in November that profits could quadruple by 2027.
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Nestle falls 4.8% as sales decline due to inflation
Shares in Swiss food giant Nestlé fell 4.8% in early trading after the company reported lower-than-expected full-year sales as inflation continued to weigh on consumer demand.
CEO Mark Schneider told CNBC he expects food inflation to decline, but some “volatility” remains as some commodity prices are at record highs. He said it would be.
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Stocks are on the rise: Delivery Hero is down 6.2%, Indivior is up 16.7%
Shares in Delivery Hero fell 6.2% in early trading following news that the company has concluded negotiations for the potential sale of its Foodpanda business in certain Southeast Asian markets.
Meanwhile, British pharmaceuticals business Indivior posted a pre-tax profit in the fourth quarter amid increased sales, rising 16.7%.The company announced that it is considering moving its main listing to the United States.
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CNBC Pro: JPMorgan reveals its favorite European stocks – giving them more than 93% upside potential
JPMorgan has discovered some top European stocks with big upside potential, as well as stocks that are currently “unattractive.”
The investment bank said U.S. stocks are “outperforming” international stocks, growth stocks are “outperforming” value stocks and large-cap stocks are “again outperforming” small-cap stocks.
CNBC Pro subscribers can read more about bank preferred stocks and preferred stocks here.
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CNBC Pro: Where do U.S. Treasury yields go from here?Morgan Stanley’s Jim Caron also participated.
Last year, as U.S. Treasury yields soared, investors flocked to allocations to cash that yields about 5% or more.
Yields have since fallen, and Wall Street widely expects them to fall further, prompting investors to shed cash and invest in other income-producing assets. But recent stronger-than-expected economic data on consumer and producer prices has raised the possibility that the U.S. Federal Reserve will cut interest rates later, rather than sooner.
CNBC Pro subscribers can read more about where these yields could be heading, according to Jim Caron of Morgan Stanley Investment Management. He also outlined three scenarios for the 10-year Treasury yield and explained how each could affect stock prices.
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European Market: Click here for opening call
European markets are set to open higher on Thursday.
According to IG data, the UK’s FTSE 100 index rose 23 points to 7,665, Germany’s DAX rose 96 points to 17,205, France’s CAC rose 55 points to 7,863 and Italy’s FTSE MIB rose 222 points to 7,863. It is expected to start at 32,289.
Proceeds are expected to come from Nestlé, Zurich Insurance, Iberdrola, Telefonica, Lloyds Banking Group, Rolls-Royce, WPP, Anglo American and Hargreaves Lansdown. Preliminary Eurozone Services and Manufacturing Purchasing Managers Index data for February will be released on Thursday.
— Holly Ellyatt
