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.
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.
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.
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.