EMEA News
Weak Markets Take Toll on Rolls-Royce Marine Unit
Rolls Royce's latest full year 2015 results show that its marine unit saw a dramatic fall in profitability as a result of weak markets, particularly with respect to offshore.
Underlying profits before financing for Rolls-Royce's marine business for the 12 months to December 31, 2015 fell by 94 percent to £15 million ($21.4 million), from £138 million ($197.4 million) in 2014.
However overall revenue was down just 16 percent.
The marine unit launched two restructuring programs in 2015 focused on reducing back-office and administrative jobs, the benefits of which are expected to start to accrue from 2016 onwards, according to Rolls Royce.
Overall, underlying profit before tax was £1,432 million ($2,049 million) down 12 percent over 2014 at constant exchange rates.
"Our performance in 2015 was broadly in line with our early expectations, with Marine markets causing most of the weakness," said Warren East, Chief Executive.
Looking ahead,East said that reduced demand in offshore oil and gas markets would create a "challenging outlook for 2016."
In October of 2015 Ship & Bunker reported on the second of two restructurings in the marine unit.
