Rolls-Royce to post record loss on bribery fine and weak pound
Underlying pretax profit at the British aircraft engine maker is expected to halve to £687m
London— British aero-engine maker Rolls-Royce is set to report a full-year loss of about £4bn on Tuesday, the biggest in its history, reflecting a fine for bribery and the collapse in the pound. Rolls-Royce has faced challenges across its business in recent years, weighing on its revenue and profit. That has prompting CE Warren East, who took the job in 2015, to restructure the company to respond to changes in civil aviation and other sectors. Pretax profit at the closely watched underlying level, which excludes adjustments in its currency hedging position, is expected to halve to £687m, according to a company-supplied consensus. The group has been hit by a slowdown in high-margin aircraft engine servicing, in part caused by reduced use of older aircraft, and lower sales of its Trent 700 engine that powers the Airbus A330, which is being superseded by the A330neo. A need to replace turbine blades on some of its Trent 1000 engines has also increased costs, and it is battling tough ma...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.