bribery settlement and the collapse in the pound has pushed Rolls-Royce to a record reported loss of $4.6 billion pounds for 2016. Last month, the British aero engine maker said it would pay $671 million pounds to UK and US authorities to settle corruption cases spanning 25 years.
The charges leveled at the company include paying bribes to win deals in Indonesia, Thailand, China, and Russia. Rolls has also had to weather the post-Brexit slump in the pound. It was hit particularly hard, as most aerospace deals are done in US dollars and the company has had to write off 4.4 billion pounds from currency related contracts.
The financial storm has meant the group's underlying profit fell by 49% in 2016 to 813 million pounds. Down from 1.4 billion pounds the previous year. Though that result is still above expectations. Despite the drop, Rolls said it would maintain its final dividend. It caps a tough couple of years for the manufacturer, which has been in full restructure mode driven by chief executive Warren East, who took control in 2015.
In delivering the results, he said the group expected modest improvements this year.