Rolls-Royce has posted a record loss of £4.6 billion, it was reported on Tuesday. The British aero engine maker has been experiencing various challenges on account of settling fines for bribery charges and the collapse in the pound from Brexit.
In the restructuring phase following the profit warnings, Rolls stressed upon the need for cutting more costs after its 2016 profit fell by 49 per cent to £813 million on an underlying basis — an outcome that did, however, exceed analysts’ expectations.
“While we have made good progress in our cost-cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business,” said Chief Executive Warren East.
The group also stated, “Over the next few months we will conclude our review of our strengths and investment opportunities and set out an appropriate vision for the business and the best way we can deliver sustainable shareholder value.”
Rolls-Royce has faced challenges across its business in recent years, affecting its revenue and profit. Therefore, Warren East is concentrating his efforts on restructuring the company to respond to changes in civil aviation and other sectors. The group said it expected “modest performance improvements” this year.
