Rolls-Royce Swings to 2018 Pretax Loss After Booking Trent Impairments
February 28 2019 - 3:16AM
Dow Jones News
By Carlo Martuscelli
Rolls-Royce Holdings PLC (RR.LN) said Thursday that it swung to
a pretax loss in 2018 despite increased revenue as it booked a
number of exceptional charges on its Trent engines.
The company posted a pretax loss of 2.95 billion pounds ($3.92
billion), compared with a profit of GBP3.90 billion in 2017.
Revenue in the period rose 6.7% to GBP15.73 billion, it said.
Rolls-Royce booked a GBP790 million charge on its Trent 1000
line of engines, and a GBP186 million charge on its Trent 900 line.
The company had previously reported issues with the engines.
Operating profit on an underlying basis increased by GBP253 million
to GBP616 million, the engineer said.
Looking ahead, Rolls-Royce guided for an underlying operating
profit of GBP700 million, plus-or-minus GBP100 million in 2019.
The company said it had withdrawn from the competition to power
Boeing Co.'s (BA) new midsized airplane platform.
"We are unable to commit to the proposed timetable to ensure we
have a sufficiently mature product which supports Boeing's ambition
for the aircraft," Rolls-Royce said.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
February 28, 2019 03:01 ET (08:01 GMT)
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