Rolls-Royce Holdings: 2015 A Bit Better Than Expected
Edison | Apr 11, 2016 06:59AM ET
Rolls-Royce (LON:RR) continues to work through its current investment phase and external economic turbulence has not further damaged the prospects. The current shortfall in cash flow performance is being addressed. We believe the strength of the core civil engine model should ultimately reassert itself, lifting equity value towards significantly higher cash valuations.
2015 a bit better than expected
The much downgraded expectation for FY15 was at least met, and indeed two unflagged one-offs actually led to a moderate beat of expectations at the underlying earnings level. As anticipated, the company has chosen to cut the dividend payment to shareholders, although a 50% reduction to the final amount was less than we expected. The FY16 interim is to be cut by a similar amount, with a further assessment at next year’s prelims. The main shortfall came in Marine due to the severely depressed offshore market. Civil was also weaker for the previously indicated reasons of lower legacy engine revenues and declines in regional and bizjet engine markets.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.