British aero-engine manufacturer Rolls-Royce will withdraw its targets on profits, cash and deliveries, and cancel its dividend, as airways around the globe floor planes due to the coronavirus pandemic.
Rolls-Royce is also aiming to declare new credit facilities in excess of 1 billion pounds ($1.22 billion) to strengthen liquidity.
Rolls-Royce, which builds engines for large civil and military planes, has been struck hard by the pandemic as its airline clients park hundreds of planes.
In March, engine flying hours had been down by around 40%. The company is paid by airlines based mostly on how many hours its engines fly.
At the February-end, Rolls Royce had an estimated 2020 free cash flow of 1 billion pounds, excluding any materials impact from COVID-19. The group will suspend that pledge.
The dividend plan of 11.7 pence per share, which has been frozen since 2016, will also be canceled.
In addition, the company Monday will reopen its civil aerospace plants in the U.K. with a fraction of the normal workforce, after shutting operations in March.
The company may also ultimately furlough about 50% of its 7,500 UK shop-floor staff, with wages supported by government grants.