facebook
twitter
search
search

British defense cuts impact Rolls Royce

Feb. 14, 2014 at 12:05 AM

BUXTON, England, Feb. 13 (UPI) -- Rolls Royce projects that revenues and profits will fail to grow this year because of defense cuts.

Rolls-Royce Chief Executive John Rishton said, "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. 2013 was a year of progress, in which our order book, underlying revenue and underlying profit all grew."

The news from the Derby and Bristol-based Rolls-Royce sent shares plunging more than 11 percent, ending a decade-long pattern of steady growth, the Buxton Advertiser reported Thursday.

Rolls-Royce also predicts a decline of between 15-20 percent in revenues from its defense aerospace business as well as lower revenues from its marine division, which will be offset by modest growth in Rolls-Royce's civil aerospace, which expanded its order book by 22 percent to $100.3 billion in 2013.

Rolls-Royce is the world's second largest provider of defense aero-engine products and services, with 18,000 engines used by 160 customers.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
JetBlue first major airline to offer direct New York to Cuba flights
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue