Rolls-Royce Profits Fall 12% To £1.4bn

Rolls-Royce Profits Fall 12% To £1.4bn
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Engine maker Rolls-Royce said annual profits tumbled 12% to £1.4 billion as the business was hit by civil aerospace cuts and falling commodity prices that have impacted output at its marine division, which supplies the oil industry.

The fall in profit at FTSE 100-listed Rolls was less than analysts expected, but it did cut its dividend by half to 7.1p a share, as it bids to conserve cash.

The business said the restructuring programme it started in November "continues to make good progress", and that its trading outlook for 2016 was unchanged.

Last year chief executive Warren East, who joined the firm last July, said he would scrap the current Aerospace and Land & Sea divisional structure.

Rolls said the move will cut out a layer of senior management, with the group instead comprising five businesses from January - civil aerospace, defence aerospace, marine, nuclear and power systems.

The shake-up came amid a major revival plan to boost performance and slash costs by between £150 million and £200 million a year.