Rolls-Royce Is Fast Becoming a British Calamity
The jet engine maker’s precarious balance sheet endangers its long-term independence.
A flying shame.
Photo: Bloomberg
When the employees of Rolls-Royce Holdings Plc read that coronavirus lockdowns and home-working have ignited a technology boom, they could be forgiven for weeping.
The company makes the jet engines that power large passenger jets, which is one of the most technically complex engineering tasks known to man. And yet, most of Rolls-Royce’s products are grounded right now because hardly anyone’s flying. On Thursday the British manufacturer revealed the devastation inflicted on its business by Covid-19 travel restrictions: The 5.4 billion-pound ($7.1 billion) loss for the six months to June was one of the biggest profit shortfalls in U.K. corporate history.