13th Feb 2015 07:15
LONDON (Alliance News) - Rolls-Royce Holdings PLC on Friday reported a drop in pretax profit and revenue for the year, hit by negative currency translation, reduced defence spending and world macroeconomic uncertainty.
The FTSE 100-listed aerospace group said its reported pretax profit for the year to the end of December was GBP67 million, a massive decline against the GBP1.7 billion reported a year earlier.
Its reported revenue for the year declined to GBP13.74 billion from GBP14.64 billion in 2013, hit by a decline in defence spending in governments in many countries and a weaker performance from its land and sea business, owing to weaker end markets. The drop was partially offset by growth in its Civil Aerospace business and by an improvement in its Defence aerospace services unit.
Rolls-Royce's order book at year-end was up 5% to GBP73.7 billion, but free cash flow fell to GBP447 million, down 43%, owing to lower volumes and lower deposits in its Civil, Marine and Defence businesses.
Rolls-Royce said its total payout to shareholders for the year was 23.1 pence, up on the 22 pence paid last year.
John Rishton, Rolls-Royce's chief executive, said the group met its guidance for profit and revenue in 2014.
"2014 has been a mixed year during which underlying revenue fell for the first time in a decade, reflecting reduced spending by our defence customers, macroeconomic uncertainty, and falling commodity prices," Rishton added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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