Rolls-Royce’s outlook for the first half of the year remains unchanged, and the company is expecting overall underlying profit before tax to be close to break-even.
The second half will feature increased large-engine deliveries and “good” underlying growth in aftermarket revenues, the company says.
It states that trading over the first five months of 2016 has been “broadly in line with expectations” and, as a result, it is making no change to its outlook.
Rolls-Royce says it is “well on track” to deliver the cost savings drawn up in its restructuring plans, and that benefits from these saving will contribute to the second-half performance.
It will detail its planning for the second phase of the transformation effort when it releases its half-year results in July.
Rolls-Royce says that foreign-exchange effects would amount to a £400 million improvement in revenues and a £40 million benefit in underlying profit before tax for the full year.
But these calculations are based on the average rates over the first five months of 2016, before the upheaval in the financial markets triggered by the UK referendum 23 June.
Source: Cirium Dashboard
