The engineering giant reported pretax profits of £1.76bn, down 36 per cent on the previous year, though the firm said that earnings were up 23 per cent once currency changes, derivatives movements and one-offs are taken out.
"In 2014, we expect a pause in our revenue and profit growth, reflecting offsetting trends across the business. This is a pause, not a change in direction, and growth will resume in 2015," said chief executive
Revenues last year rose 19 per cent to £15.5bn, but excluding the recentlyacquired engineer
"It's clearly shocked the market...It's a weaker backdrop than we have factored in previously. It's dragged everything else down," said Investec analyst
The company yesterday forecast a 15 to 20 per cent drop in defence revenues in the coming year, which will be offset by "modest growth" in civil aerospace and more orders in its energy unit.
ANALYST VIEWS By Marion Dakers HOW DID YOU TAKE ROLLS' RESULTS AND OUTLOOK FOR THE YEAR? SASH TUSA ESPIRITO SANTO Rolls' management is likely to focus on the operational challenges associated with the falling defence backlog and transition to a high level of Trent XWB deliveries. [T]he continued news-flow concerning the SFO investigations... [is] likely to be an unwelcome distraction, but not core to the investment case.
SANDY MORRIS JEFFERIES Defence takes a sharp step back to where it was in 2010. Then,
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