Rolls-Royce share price: FY underlying revenue drops 6%
Rolls-Royce Holdings Plc (LON:RR) has this morning released its full-year results. Here are the highlights from the company statement with more to follow:
· Record order book £73.7 billion; Underlying revenue and profit in line with guidance; Free cash flow £254 million (£447 million excluding the divested Energy business); Reported profit before tax £67 million; Concluded the sale of the Energy business and began a £1 billion share buyback with the proceeds
· Delivered the first Trent XWB engines for launch customer Qatar Airways; Secured an exclusive position to power the Airbus A330neo; Launched new family of medium-speed reciprocating engines; Payment to shareholders 23.1 pence per share, up 5%
John Rishton, Chief Executive, said:
“We have met guidance for 2014 revenue and profit in challenging conditions while continuing to build strong foundations for future growth.
“2014 has been a mixed year during which underlying revenue fell for the first time in a decade, reflecting reduced spending by our defence customers, macroeconomic uncertainty, and falling commodity prices. In response to these headwinds, we are taking decisive action to improve the Group’s financial performance and accelerating our focus on the 4Cs: Customer, Concentration, Cost and Cash. This includes a major restructuring programme in our Aerospace Division and continued rationalisation of our Land & Sea Division.
“The fundamentals of our business remain solid, with long-term growth in demand for the complex power systems we deliver across our Aerospace and Land & Sea Divisions.
“In Aerospace, the delivery of the first Airbus A350XWB, powered by the Rolls-Royce Trent XWB engine, marked a significant milestone in our most important programme. In Land & Sea, we introduced a new family of medium-speed reciprocating engines.
“Our record order book demonstrates the faith our customers continue to place in our technology and underpins our confidence in future growth.”
As of 07:11 GMT, Friday, 13 February, Rolls-Royce Holding PLC share price is 906.25p.
