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.