Rolls-Royce says 2016 outlook unchanged

Rolls-Royce said said its outlook for 2016 remained unchanged for revenue, profit and cash.

The company said it would benefit from weaker sterling and life cycle cost reductions which would more than offset higher engineering and programme costs in its civil aerospace unit.

Rolls said other businesses were overall in line with expectations, despite “mixed” market conditions.

Power systems markets were mixed reflecting weaker demand for industrial engines and service, although marine and power generation remain steady, but there were no signs of recovery yet in offshore oil & gas markets and further revenue weakness was expected in 2017 in the marine division.

The company was also holding a capital markets day for investors and set out the impact of new accounting rules that will come into force in 2018.