Rolls-Royce reports GBP4.03b loss
Aero engine maker Rolls-Royce reported a net loss of GBP4.03b for 2016 as it suffered from a post-Brexit vote currency fall and the settlement of bribery allegations. The pre-tax loss was GBP4.6b, with underlying profit of GBP813m, down from 2015’s GBP1.43 billion, both pre-tax. In January Rolls reached agreements with the UK, US and Brazil over bribery investigations. Total cost of the payments to the three countries was £671 million, spread over a number of years. The post-Brexit drop in the pound led to a GBP4.4b hedging charge for the year. Rolls said its US dollar hedge book increased by 31% during the year to $37.8b, or over 5 years of net exposure. The company reported revenue for 2016 of GBP14.96b, up 9% from GBP13.72b the previous year. “2016 has been an important year as we accelerated the transformation of Rolls-Royce,” CE Warren East said. “While we have made good progress in our cost cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-02-15/general/rolls-royce-reports-gbp4-03b-loss
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Rolls-Royce reports GBP4.03b loss
Aero engine maker Rolls-Royce reported a net loss of GBP4.03b for 2016 as it suffered from a post-Brexit vote currency fall and the settlement of bribery allegations. The pre-tax loss was GBP4.6b, with underlying profit of GBP813m, down from 2015’s GBP1.43 billion, both pre-tax. In January Rolls reached agreements with the UK, US and Brazil over bribery investigations. Total cost of the payments to the three countries was £671 million, spread over a number of years. The post-Brexit drop in the pound led to a GBP4.4b hedging charge for the year. Rolls said its US dollar hedge book increased by 31% during the year to $37.8b, or over 5 years of net exposure. The company reported revenue for 2016 of GBP14.96b, up 9% from GBP13.72b the previous year. “2016 has been an important year as we accelerated the transformation of Rolls-Royce,” CE Warren East said. “While we have made good progress in our cost cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business.”<br/>
