Rolls-Royce gears up for an improved 2017 with an unchanged outlook after its record £4.6bn loss last year

 
Rebecca Smith
The engine maker said 2017 is on track so far
The engine maker said 2017 is on track so far (Source: Getty)

Rolls-Royce has kept its underlying outlook for both its half-year and full-year revenue unchanged, saying today it has started 2017 well, amid a backdrop of "mixed market conditions".

As all businesses are performing in line with expectations for the first half the results, to be reported on 1 August, remain unchanged. If exchange rates remain unchanged, currency effects will bump up Rolls-Royce's full-year reported revenues by around £400m and profit before tax by about £50m.

Read more: KPMG to be investigated over Rolls-Royce audit

The aeroplane engine-maker is hoping for a sunnier 2017 after revealing a record loss of £4.6bn last year, taking a hit from the sterling slump in the wake of the Brexit vote.

In January, Rolls-Royce also agreed to pay £671m to settle corruption probes with three global fraud squads. The investigations stemmed from claims of possible bribery and corruption in the company's overseas markets, China and Indonesia in particular.

Warren East, chief executive of Rolls-Royce, said:

2017 has started well, although we have a great deal more to do to deliver the full year. As expected, near-term cash-flow performance remains challenging as we continue to invest in transforming and growing the business to benefit future years.

Our ramp up in large engine production is progressing well, reflecting the significant investments in manufacturing capability in recent years.

The engineering giant has also appointed an American Airlines restructuring specialist to its board, with Beverly Goulet joining on 3 July, becoming a member of its nominations and governance committee, and its audit committee.

Goulet's recent roles included chief restructuring officer and executive vice president and chief integration officer.

Ian Davis, Rolls-Royce's chairman, said: "Beverly has deep functional expertise in finance, strategy and in legal and governance matters and she knows the airline industry extremely well. I believe she will be a valuable and committed member of the board and will bring very relevant expertise and experience to our decision making."

Read more: Rolls-Royce made its largest ever loss last year

Related articles