More than GBP3 billion was wiped from the value of Rolls-Royce yesterday as it became a victim of sharp cuts in defence spending on both side of the Atlantic.Shares in the defence and aerospace group fell by as much as 17 per cent at ome point as it warned that revenues and profits would fail to grow this year. The investor retreat came despite assurances from chief executive John Rishton that growth would resume next year.The group - currently facing a probe by the Serious Fraud Office into bribery and corruption allegations in Asia - is forecasting a decline of up to 20 per cent in revenues from its defence aerospace business as well as lower revenues from its marine division.This will be offset by modest growth in civil aerospace, which expanded its order book by 22 per cent to GBP60.3 billion last year.Full-year results yesterday showed that underlying profits rose by 23 per cent to GBP1.76bn in 2013, while the order book was 19 per cent higher at GBP71.6bn.Rishton said: "We've defied gravity for a couple of years compared to many other companies and now we're having the impact come together in one year."The City had been expecting growth of almost 8 per cent in the group's 2014 pre-tax profits.Investec analyst Chris Dyett said: "It's clearly shocked the market. It's a weaker backdrop than we have factored in previously."Rolls is the world's second-largest provider of defence aero-engine products and services, with 18,000 engines used by 160 customers.Major customers include the US armed forces but the country's recent budget crisis has contributed to a 21 per cent decline in the division's order book.Shares closed down 13.6 per cent at 1,045p.