Rolls-Royce Holdings sees 8 pct decline in profit for 2014

Britain-based engine maker Rolls-Royce Holdings announced Friday its underlying profit before tax reached 1.617 billion pounds (2.5 billion U.S. dollars) in 2014, showing a year-on-year decrease of 8 percent.

The company attributed the decline to customers' spending cuts as a result of their concern over economic uncertainties.

Data showed that Rolls-Royce Holdings' underlying revenue decreased by 6 percent year-on-year to reach 14.59 billion pounds in 2014. Reported earnings per share and free cash flow over the same period dwindled by 95 percent and 67 percent, respectively.

John Rishton, Chief Executive of the company, said:" 2014 has been a mixed year during which underlying revenue fell for the first time in a decade, reflecting reduced spending by our defense customers, macroeconomic uncertainty, and falling commodity prices."

"In a complex and highly-regulated business, we recognize that it will take some time for the full benefit of our cost programs to feed through. There are also a number of headwinds in our civil aerospace business associated with our future growth," he added.

Rolls-Royce Holdings said it expected to pay a dividend of 23.1 pence, or 0.231 pounds, per share to its shareholders.

The company also announced in its 2015 performance guidance that it seeks to gain revenues of 13.4 to 14.4 billion pounds and hopes its profit before tax reach 1.4 to 1.55 billion pounds. (1 pound = 1.54 U.S. dollars) Endit