Aims for aerospace margin of 1517
Expects medium term operating profit at 2.8 bln stg
Shares rise 4

LONDON, Nov 28 Reuters RollsRoyce aims to become a much more profitable business with a goal to increase its civil aerospace margin to 1517 from 2.5 last year, in boss Tufan Erginbilgic39;s new masterplan for Britain39;s most prestigious engineering company.

Setting out a strategy that has been almost a year in the making, the chief executive said he would deliver up to 2.8 billion pounds 3.53 billion of operating profit in the medium term compared with its forecast guidance for up to 1.4 billion pounds this year.

Erginbilgic, a former BP executive who took over in January, is the latest CEO to try to tackle RollsRoyce39;s inefficiencies.

He is seeking a step change in margins by around 2027 in an engine business that powers nearly half of longhaul aircraft. The new target would bring Rolls closer to its rivals, such as General Electric, its major competitor in the widebody sector.

Shares in RollsRoyce, which have soared 161 in the year to date, gained 4 in early deals following the announcement of the new targets.

We are setting compelling and achievable financial targets for the midterm which will take RollsRoyce significantly beyond any previous financial performance, Erginbilgic said on Tuesday.

Agency Partners analyst Nick Cunnigham said that the targets imply that RollsRoyce is willing to shed revenues in exchange for better profitability.

If so, that is…