8th May 2015 06:12
LONDON (Alliance News) - Rolls-Royce Holdings PLC Friday maintained its earnings guidance for 2015, saying a ramp up in deliveries of Trent XWB engines for Airbus planes would help offset the impact of lower oil prices in its Land & Sea business.
The aircraft and marine engine maker, which last year issued a string of profit warnings, said it expects its results to be weighted to the second half of the year.
Its guidance excludes the impact of currency movements. It said that the dollar's rise against the poundo so far in 2015 has been offset by sterling's rise against the euro and the Norwegian kroner, and if average exchange rates remain where they are, the movements will be broadly neutral for earnings. However, they would knock about GBP350 million of revenue.
Rolls-Royce reacted to the downturn in some of its markets by restructuring. It is planning 2,600 job cuts, and Friday said it is on track to achieve this, with 1,300 having left the company so far, It said it is also driving further cost reductions in the Land & Sea unit.
"On cash, we expect a first-half bias in the cash cost of our restructuring efforts, with the benefits of restructuring beginning to be seen later in the year. We therefore also expect free cash flow to be more weighted towards the second half than in 2014," it said.
"Since we last reported, we have continued to grow our order book and to invest in the future growth of our business," the company added.
By Steve McGrath; [email protected]; @stevemcgrath1
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