Rolls-Royce says it will recover in the second half

Roll-Royce is in turnaround mode after warning last year that 2016 profit would halve.
Roll-Royce is in turnaround mode after warning last year that 2016 profit would halve.
0
Have your say

Rolls-Royce reported an 80 per cent drop in first half profit, but stuck to guidance that its profit performance will recover in the second half of the year.

Rolls-Royce, which is in turnaround mode after warning last year that 2016 profit would halve, reported an underlying pretax profit of £104m for the first six months of the year, beating a consensus forecast for it to be £16m in the red.

The company said its outlook for the full year is unchanged, driven by a pick-up in large aero-engine deliveries, growth in demand for engine servicing and as it benefits from a cost cutting program. Analysts expect profit it to post pretax profit of £669m in 2016.

​​Chief ​e​xecutive Warren East​ said: "​Order intake has been good and, although known headwinds constrained revenue and profit in the first half, the business remains well positioned to deliver a solid second​ ​half performance​."

​Following the EU referendum, Rolls-Royce reaffirmed its commitment to the UK but warned that longer term assurances w​ill​ depend on ​the​ post-Brexit deal.​

Rolls-Royce is involved with The ​​Advanced Manufacturing Research Centre (AMRC) in South Yorkshire, which is managed by the University of Sheffield.