Rolls Royce Exhibits Bearish Outlook on 2015 Profit Trends

Published By : 16 Feb 2015 | Published By : QYRESEARCH

Rolls Royce has expressed that the company’s profits will decline by almost 13% when compared with the previous year’s performance. As per the latest industry updates, the sharp decline in oil prices that took place recently had a major impact on the company in terms of greater uncertainty for most of its customers and markets. According to Rolls Royce its profits during 2015 are expected to range between 1.4 billion pounds and 1.5 billion pounds. The pretax profits earned by the company declined by 8% to a value worth 1.62 billion pounds. This figure was almost in line with the estimates as predicted in October.

For the very first time in almost ten years, the underlying revenue declined by 6% thereby reaching a value of 14.6 billion pounds, as a result of reduced commodity prices and reduced defense expenditure. The company also stated that the performance of external environment is at present characterized by sluggish performance. This has had an adverse impact on some of the prime market of Rolls Royce. Due to drop in oil prices by almost 50%, the uncertainty for most of Rolls Royce’s markets has surged, and this has mostly affected Marine Offshore. 

The chief executive of Rolls Royce has expressed that the 2014 guidance for profit and revenue has been met with by the company in the face of economic challenges and restraints, which has ensured a sturdy economic foundation for future business performance. According to him the previous year brought about mixed results for Rolls Royce and the company was working towards improving the financial performance that also looks into a restructuring program. 
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