Rolls to unveil record loss amid corruption scandal

Aero-engines giant Rolls-Royce is set to unveil a record £4 billion loss this week, the twin propellers being the slump in the value of sterling and the company's £671 million corruption fine last month.
By The Newsroom
Published 13th Feb 2017, 07:38 BST
Updated 1st Mar 2017, 09:46 BST

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Rolls-Royce has been hit by the slump in sterling and a hefty corruption fine. Picture: PARolls-Royce has been hit by the slump in sterling and a hefty corruption fine. Picture: PA
Rolls-Royce has been hit by the slump in sterling and a hefty corruption fine. Picture: PA

Analysts say the post-Brexit plunge in the pound will force it to write down earnings by £3bn-£3.5bn when it posts its annual results tomorrow.

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Rolls-Royce agrees £671m settlement for corruption claims

A big provision for the corruption case brought against it by the Serious Fraud Office and authorities in America and Brazil is also expected to be taken.

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The investigation unearthed “systemic” bribery and corruption at Rolls-Royce from 1989 to 2013. The headline loss, alongside underlying profits expected to have halved to £687m in 2016 from £1.4bn in 2015, will be the biggest in the Footsie-quoted giant’s 133-year history. Revenues of £13.5bn are forecast.

Rolls-Royce chief executive Warren East took the helm 18 months ago following a flurry of profits warnings.

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