Rolls-Royce ( OTCPK:RYCEY ) ( OTCPK:RYCEF ) -3.5% in London trading Friday after new CEO Tufan Erginbilgic told staff the company is a "burning platform" whose performance was "unsustainable" and faces a "last chance" to change , Financial Times reported.
"We underperform every key competitor out there," Erginbilgic reportedly said in an address at Rolls-Royce's ( OTCPK:RYCEY ) ( OTCPK:RYCEF ) U.K. manufacturing site at Derby. "Rolls-Royce has not been performing for a long, long time; it has nothing to do with COVID, let's be very clear."
The comments from Erginbilgic, who started at CEO on January after coming over from BP, conveyed a sense of urgency and suggested there would be more restructuring, Bernstein analyst George Zhao said.
"There may not be easy solutions" for Rolls-Royce ( OTCPK:RYCEY ) ( OTCPK:RYCEF ), Zhao said. "Many rounds of restructuring and asset sales were already undertaken under prior CEO Warren East, putting to question just how much more can be implemented."
Taking a more optimistic view, Rolls-Royce ( OTCPK:RYCEY ) ( OTCPK:RYCEF ) is a strong buy as it faces "numerous tailwinds in 2023," Crispus Nyaga writes in an analysis newly posted on Seeking Alpha .
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New Rolls-Royce CEO warns of 'last chance' as company a 'burning platform'