Rolls Royce says falls into first half net loss

July 25, 2013
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Rolls Royce recorded a net loss in the first half of 2013/AFP
Rolls Royce recorded a net loss in the first half of 2013/AFP

, LONDON, July 25 – Rolls Royce recorded a net loss in the first half of 2013 compared with a profit after tax one year earlier on changes to finance costs, the maker of aircraft engines said on Thursday.

The British company posted a loss after tax totalling £358 million ($550 million, 416 million euros) in the six months to June 30 compared with a net profit of £1.2 billion in the first half of 2012, Rolls Royce said in an earnings statement.

However, underlying pre tax profits surged by a third to £840 million, while revenues jumped 27 percent to £7.3 billion for the company whose engines are powering the new Airbus A350 wide bodied planes.

“While underlying profits were up 34 percent it is clear we have a lot more to do on cost,” Rolls Royce chief executive John Rishton said in the statement, adding that the company was maintaining its full year profit estimates.

News of surging underlying earnings sent Rolls Royce’s share price soaring to the top of the London stock market.

Shares jumped 3.90 percent to 1,226 pence on the capital’s FTSE 100 index of leading shares, which was down 1.05 percent at 6,551.18 points.

“Rolls Royce is leading the FTSE, up almost 4.0 percent on the back of encouraging first half results this morning, although some clients are taking the opportunity to sell at these levels,” said Andy McLevey, head of dealing at online stockbroker Interactive Investor.

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