Rolls-Royce Group PLC Swung to Pretax Profit in 2017

   By Oliver Griffin

Rolls-Royce Holdings PLC (RR.LN) said Wednesday that it swung to pretax profit in 2017 and that it expects mid-single-digit revenue growth in 2018.

The U.K.-based engineering company said that profit for the year ended Dec. 31 was 4.9 billion pounds ($6.79 million), compared with a loss of GBP4.64 billion a year earlier.

Rolls-Royce's more closely watched underlying pretax profit, a figure that strips out one-time items and currency fluctuations, rose 31% to GBP1.07 billion.

Revenue rose 9% to GBP16.31 billion, Rolls-Royce said.

Rolls-Royce said that, as part of the business-structure simplification it announced in January, it will focus on operational restructuring of management, support and engineering, and technology functions across the group.

The company is proposing a simplified staff structure with fewer layers and greater spans of control, it said.

Rolls Royce said it expects the restructuring to deliver a significant reduction in costs and to improve performance across the group.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

March 07, 2018 02:49 ET (07:49 GMT)

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