Rolls-Royce Sees 2018 at Higher Half of Guidance; Swings to 1st Half Pretax Loss
August 02 2018 - 3:05AM
Dow Jones News
By Adria Calatayud
Rolls-Royce Holdings PLC (RR.LN) forecast Thursday that cash
flow and underlying operating profit for 2018 will be at the higher
half of its guidance range, but said that it slid to a pretax loss
for the first half.
Pretax loss for the first six months of the year was 1.26
billion pounds ($1.66 billion) compared with a profit of GBP1.44
billion in the year-earlier period, the British aircraft engine
maker said. It also swung to a net loss of GBP962 million from a
net profit of GBP1.17 billion a year earlier.
Rolls-Royce said it booked an exceptional charge of GBP554
million related to issues with its Trent 1000 engines, which power
some Boeing 787 Dreamliners. On an underlying basis, the company
swung to a pretax profit of GBP73 million compared with a loss of
GBP143 million.
First-half revenue rose 12.5% at GBP7.49 billion from GBP6.66
billion a year earlier, the company said.
Rolls-Royce said its first-half results were ahead of
expectations, due to strong growth at its civil aerospace and power
systems divisions.
Rolls-Royce now expects underlying pretax profit and cash flow
for the full year to be in the upper half of its guided range, it
said. The company previously guided for underlying profit of around
GBP400 million plus-or-minus GBP100 million and free cash flow of
around GBP450 million plus-or-minus GBP100 million.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
August 02, 2018 02:50 ET (06:50 GMT)
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