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Interim Results

Rolls-Royce reports pre-tax profit, up from loss in 2016

01 August 2017 07:44

Rolls-Royce announced profit before tax of £1,941m in the first half of 2017, up from a loss of £2,150m in 2016.

HIGHLIGHTS:

- Reported revenue up 12% at constant exchange rates; 17% at actual exchange rates

- Underlying revenue up 6% at constant exchange rates, led by Civil Aerospace and Power Systems

- Underlying profit before tax of £287m, up £183m (2016: £104m)

- Good profit growth in Civil Aerospace and Power Systems with Defence remaining steady; Marine continues to face challenging offshore oil and gas markets

- First half commercial and administration costs down £38m or 7%

- First half R&D spend increased to £411m (2016: £378m), underpinning key growth opportunities

- Free cash flow performance solid with a steady operating performance, helped by effective working capital management

- Interim payment to shareholders unchanged at 4.6p per share

The outlook for full year 2017 was unchanged.

CEO Warren East said: "Rolls-Royce delivered encouraging year-on-year operational progress in the first six months of the year.

"Civil Aerospace large engine deliveries increased 27% and we made good further progress improving Trent XWB OE economics.

"Restructuring savings were ahead of plan.

"Together with a higher than expected benefit from long-term contract accounting adjustments, this resulted in a good set of results, with financial performance ahead of our expectations for the first half.

"Looking to the balance of the year, execution and delivery of a number of important milestones across our businesses will be key to achieving our full year expectations.

"Our outlook for full year profit and cash remains unchanged."

Story provided by StockMarketWire.com

Related Company: RR.

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