Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Rolls-Royce cuts profit forecast for marine business

Rolls-Royce cuts profit forecast for marine business
Rolls-Royce has cut the full year profit forecast for its marine division as it feels the impact of the offshore downturn.

“Overall, performance for 2015 for the bulk of our business is expected to be broadly in line with previous guidance. However, further deterioration in the offshore market is now expected to impact full year profit for marine, the company said in an update on guidance for 2015.

Rolls-Royce said it expected the underlying profit from marine to be between breakeven and GBP40m compared to a previous forecast of between GBP90m – GBP120m.

“We are reviewing further cost reduction and restructuring activities in Marine to improve performance which, including asset impairments, is expected to result in an exceptional charge of GBP70m to GBP100m which will be recognised outside underlying profit,” it said.

Warren East, chief executive of Rolls-Royce commented: “Our marine business needs to overcome its offshore market headwinds and rebuild a consistent trend of improving revenues and margins.”

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish