RYCEY Rolls Royce Holdings PLC (PK)

   By Oliver Griffin 
 

Engineering company Rolls-Royce Holdings PLC (RR.LN) reported full-year results on Wednesday. Here's how they came in:

UNDERLYING PRETAX PROFIT: Rolls-Royce reported underlying pretax profit--a closely watch figure that strips out one-time items and currency fluctuations--of 1.07 billion pounds ($1.48 billion), a 31% increase on the previous year that also beat expectations. A consensus estimate from 14 analysts had forecast underlying pretax profit of GBP869 million, according to FactSet.

PRETAX PROFIT: Rolls-Royce smashed analysts' expectations, swinging to a pretax profit of GBP4.9 billion from a pretax loss of GBP4.64 billion in 2016. A consensus estimate from four analysts had forecast pretax profit of GBP933 million.

WHAT WE WATCHED:

FURTHER STREAMLINING: Financial services company Hargreaves Lansdown expected news on further efforts to restructure the business, and weren't disappointed. Rolls-Royce said it is proposing a simplified staff structure with fewer layers and greater spans of control, but stressed that it doesn't have any figures on expected job losses at present.

ENGINE PROBLEMS: Rolls-Royce said that cash costs associated with component flaws on its Trent 1000 and Trent 900 engines are expected to double in 2018, compared with an impact of GBP170 million in 2017. The company said it will take until 2022 for the Trent 1000 and Trent 900 engines to be fully upgraded with more durable components.

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

(END) Dow Jones Newswires

March 07, 2018 06:04 ET (11:04 GMT)

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