TOP NEWS: Rolls-Royce Swings To 2017 Profit, Plans To Simplify Staff

7th Mar 2018 07:44

LONDON (Alliance News) - Rolls-Royce Holdings PLC on Wednesday reported a turn to profit for 2017, as it laid out more of its restructuring plans and forecast underlying revenue growth for 2018.

The defence and aerospace company said revenue rose 9% in 2017 to GBP16.31 billion from GBP14.96 billion in 2016, as it swung to a pretax profit of GBP4.90 billion from a loss of GBP4.64 billion the year before.

Underlying pretax profit rose 25% on an organic basis to GBP1.07 billion, as underlying revenue rose 6% to GBP15.09 billion.

Among divisions, Civil Aerospace underlying revenue rose 12%, Defence Aerospace declined 1%, Power systems rose 3%, Marine declined 9% and Nuclear rose 4%.

The FTSE 100-listed company issues non-cumulative redeemable preference shares as an alternative to paying a cash dividend, for 2017 this will be equivalent to an annual payout for 11.7 pence per share, in line with the year before.

Fro 2018, Rolls-Royce said it sees high single-digit underlying revenue growth for its Civil Aerospace and Power systems unit, with Defence stable, resulting in mid single-digit growth across the group.

"Rolls-Royce made good progress in 2017. Financial results were ahead of our expectations and we achieved a number of important operational and technological milestones, but were impacted by the increasing cost and challenge of managing significant in-service engine issues," said Chief Executive Warren East.

The company said it continues to focus on its operational restructuring, proposing a "considerably simplified" staff structure. The restructuring programme is expected to deliver a "significant reduction" in costs, Rolls-Royce said.

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