Home Business NewsBusiness Rolls-Royce sees record loss of £4.6bn

Rolls-Royce sees record loss of £4.6bn

by LLB Reporter
14th Feb 17 8:56 am

Take a look at the figures…

Rolls-Royce has seen a record loss before tax of £4.6bn, a bribery settlement and the fall in the pound has been the cause of this.

Once one off costs had been taken out, the company’s underlying profit looked better than what experts predicted.

The jet engine maker came to an agreement to pay £671m to settle corruption cases with the UK and US authorities, it’s also written off £4.4bn from currency related contracts.

Most aerospace deals are dealt with in dollars, the company was affected badly by the tumble in the pound after the Brexit vote.

Underlying profits fell to £813m, this is down from £1.4bn on the previous year.

Chief executive Warren East said more needed to be done to improve profit margins, he said: “We must ensure our wide-ranging business transformation programme delivers the full benefits expected, not only in terms of cost savings but also the cultural and behavioural changes necessary to ensure the transformation is sustained and high standards of business conduct are maintained,”

“These are essential if we are to become a more trusted, resilient company.”

Leave a Commment


Sign up to our daily news alerts

[ms-form id=1]