5th May 2016 06:18
LONDON (Alliance News) - Rolls-Royce Holdings PLC on Thursday said trading in the first few months of 2016 has been in line with its expectations and its outlook for the full year is unchanged.
The FTSE 100-listed engine maker said profit, before any financing charges, will be significantly weighted to the second half, in line with previous guidance.
The outlook for the second half, Rolls-Royce said, reflects increased large-engine deliveries, good underlying growth in aftermarket revenue and incremental benefits from its restructuring programme.
Rolls-Royce has been aggressively cutting costs and trimming jobs as it re-bases itself to cope with myriad pressures on its core businesses. Its marine business has seen orders plummet due to the downturn in the oil and gas industry, its defence unit has come under pressure from a consistent squeeze on global defence budgets, and its aerospace arm is struggling as major jet makers suc as Airbus NV and Boeing Co transition to new plane programmes.
Rolls-Royce said it is on track to deliver its target of GBP30 million to GBP50 million in cost savings in 2016 and said the legacy restructuring programmes in its civil, defence and marine businesses remain on track.
"Despite steady market conditions for most of our businesses, 2016 continue to be a challenging year overall as we sustain investment and transition to major products in Civil Aerospace, and tackle weak markets in Marine," said Chief Executive Warren East.
By Sam Unsted; [email protected]; @SamUAtAlliance
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