Last checked at 16 Jun 2017 07:00
16 June 2017
ROLLS-ROYCE HOLDINGS PLC
PARIS AIRSHOW and PRE-CLOSE STATEMENT
Rolls-Royce Holdings plc will be meeting investors over the next two weeks, principally at the Paris Airshow, and in advance of the close period ahead of its Half Year Results on 1 August 2017.
Rolls-Royce has started 2017 well, with all businesses performing in line with our expectations. As a result, Group expectations for first half revenue, profit and free cash flow remain unchanged from that provided at the AGM in May.
Looking at the year as a whole, against a backdrop of mixed market conditions, we remain focused on the delivery of our engine production ramp up, the continued execution of our transformation programme and growing our free cash flow. Full year expectations for revenue, profit and free cash flow are unchanged from those outlined in February 2017.
The 2017 outlook excludes the year-on-year effect of foreign exchange translation on our reported results. Our guidance at this stage of the year is unchanged. If rates remain unchanged from those seen recently, the impact of the average year-on-year movement on the translation of our overseas subsidiaries results would improve full year reported revenues by around £400m and improve reported profit before tax by around £50m.
Over the next few days the Company will be holding a number of meetings with investors and analysts; all comments made at these events are expected to be consistent with the outlook reconfirmed above and should not be seen as a change to any of the longer term comments made on the company's growth prospects.
Commenting on the performance to date, Warren East, Chief Executive of Rolls-Royce, said: "2017 has started well, although we have a great deal more to do to deliver the full year. As expected, near term cash flow performance remains challenging as we continue to invest in transforming and growing the business to benefit future years."
"News updates around events such as the Paris Airshow are increasingly expected to reflect our transition from a period of above-trend order book growth to one of operational delivery. Our ramp up in large engine production is progressing well, reflecting the significant investments in manufacturing capability in recent years. Across the wider group, all our businesses continue to focus on transformation activities and are benefiting from our increased focus on pace and simplicity."
For further information please contact:
Investors:
John Dawson +44 7557 287101
Helen Harman +44 7968 906645
Ross Hawley +44 7920 822534
Media:
Richard Wray +44 20 7227 9163
This announcement contains forward-looking statements. Any statements that express forecasts, expectations and projections are not guarantees of future performance and will not be updated. By their nature, these statements involve risk and uncertainty, and a number of factors could cause material differences to the actual results or developments. This announcement is intended to provide information to shareholders, is not designed to be relied upon by any other party, or for any other purpose and the Company and its directors accept no liability to any other person other than under English law.