Rolls-Royce Holdings has today warned its shareholders of falling revenues throughout the engineering business.
The decline in revenues, the company said in a statement today, was a result of trade sanctions against Russia finally taking their toll.
As a consequence, the statement said, the company now expects group underlying revenue in 2014 compared with 2013, to be 3.5% to 4% lower.
However profit is still predicted to remain flat as the company implements cost-saving measures, or “restructuring and rationalisation” across the greater Rolls-Royce Group.
“While the short term is clearly challenging, reflecting the economic environment, the prospects for the Group remain strong, driven by the growing global requirement for cleaner, better power,” John Rishton, group chief Executive, said.
“The operational efficiencies already achieved and the cost programmes we will now accelerate will put us in a better position to benefit from these growth drivers”.
According to the report, revenues for the group’s civil aerospace, defence aerospace, marine and power systems divisions, remained unchanged.
But nuclear and energy revenue guidance would fall from 0%-to-5%, down from 5%-to-10% as a result of “market conditions and the impact of the impending sale of our Energy gas turbine and compressor business.”