8th Nov 2013 08:23
LONDON (Alliance News) - Aircraft and marine engine maker Rolls-Royce Holdings PLC Friday said its full-year guidance remains unchanged as a better outlook for its defence business offsets a weaker one for its marine business.
The company is doing well on the back of soaring production of commercial aircraft by Airbus and Boeing, but it has been hit by a cut in defence spending in the US and UK.
In a trading update, the company said it still expects modest growth in underlying revenue in the current fiscal year and good growth in underlying profit. Cashflow should breakeven, it said.
It revised its guidance for its defence aerospace business to modest growth in underlying profit, from its previous forecast for broadly flat profits, but downgraded guidance for the marine unit to broadly flat, from a previous forecast for modest growth. It said its Tognum unit, a German engine business that it acquired through a joint venture with Daimler in March, is continuing to trade in line with expectations.
Rolls-Royce, who's main competitor is General Electric of the US, will report its full-year results February 13.
Its shares were up 3% at 1,205 pence early Friday, one of the few gainers on the FTSE 100.
By Steve McGrath; [email protected]; @SteveMcGrath1
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