Rolls-Royce Logs Net Loss On Slumping Pound

Rolls-Royce logs net loss on slumping pound

LONDON, (Pakistan Point News - APP - 28th july,2016) - British engine maker Rolls-Royce said Thursday it plunged into a first-half net loss on a vast accounting charge sparked by a post-Brexit collapse in the pound. The group posted a loss after taxation of #1.77 billion ($2.32 billion, 2.11 billion Euros) in the six months to the end of June, which contrasted with a net profit of #360 million last year. Rolls-Royce added in a results statement that it took a vast #2.

3-billion hit from the value of its US Dollar hedgebook after the shock June 23 EU exit referendum, but the group stressed it made an underlying profit. The company's hedgebook, which stood at $35 billion in late June, is aimed at smoothing out the impact of Currency fluctuations in the long term. Adjusted pre-tax profit meanwhile stood at #104 million for the reporting period, down almost 80 percent from a year earlier.