Rolls-Royce sticks to 2016 guidance

LONDON: British engineering company Rolls-Royce reiterated its outlook for 2016 in a sign of stability after warning on profit three times last year due to changes in the aero-engine market and weak demand from energy customers.

Rolls-Royce, which makes engines used to power aeroplanes and ships, said ahead of its annual general meeting on Thursday that profit would be weighted towards the second half of the year and that the first six months would be close to breakeven. Analysts expect Rolls-Royce´s 2016 pretax profit to halve to 642 million pounds according to Thomson Reuters data, down from 1.36 billion in 2015.The company had already warned that 2016 would be challenging, setting out a restructuring plan last year with the aim of saving between 150 million pounds and 200 million pounds a year by 2017 by cutting staff and improving decision making.