Rolls-Royce reports 2017 half year results

For the first half 2017 Rolls-Royce reported that revenue increased 12% at constant exchange rates 17% at actual exchange rates. Profit before tax was £1,941m compared to a loss of £2,150m in 2016. Underlying revenue was up 6% at constant exchange rates, led by Civil Aerospace and Power Systems. Underlying profit before tax was £287m, up £183m compared to 2016. Rolls-Royce reported good profit growth in Civil Aerospace and Power Systems with Defence remaining steady; Marine continues to face challenging offshore oil and gas markets. First half commercial and administration costs were down £38m or 7% and first half R&D spend increased to £411m compared to £378m in 2016, underpinning key growth opportunities. Free cash flow performance was solid, with a steady operating performance, helped by effective working capital management.