LONDON: British engineering firm Rolls-Royce, under pressure after slashing forecasts three times in nine months, reported a 32 percent drop in first-half profit, which was slightly better than expected.
It said the performance put it on track to meet downgraded 2015 guidance.
Rolls-Royce shocked investors earlier this month when it warned profits at its aero-engine business would falter next year, adding to declines seen in its marine division, where a lower oil price has caused a slowdown in orders from energy customers.
Reassuring that there was not another downgrade to profit forecasts for 2015 since one issued three weeks ago, the company reported underlying pretax profit of 439 million pounds ($684.6 million) for the first six months of the year, beating guidance of 390-430 million pounds.
The absence of a new profit warning provides some relief for new Chief Executive Warren East, who took up the role on July 2, before issuing a downgrade four days into the job, blaming lower demand and pricing for the Trent 700 engines which are being replaced by a new model.
Restructuring plans are already underway in Rolls-Royce's marine and aerospace divisions.
"I am going to be working with the team to add pace and simplicity into what we're doing," East told reporters. He said he planned to tell investors what his priorities are for Rolls-Royce before the end of the year. He has already said he would carry out an operational review of the company.
Rolls-Royce also said it would raise the interim dividend by 3 percent to 9.27 pence per share.
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