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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.


- 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."

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