UK engineering group Rolls-Royce warned on Friday that shifts in currency exchange rates could hit reported revenues this year but possibly not profits, maintaining its current forecast. The world's second-largest maker of aircraft engines after General Electric, said profits would be more weighted towards the second half of the year and that currency effects could wipe 350 million pounds ($540 million) from its revenue this year.
It said its current forecast for the year excluded the effects of currency translation, citing the strong US dollar but a weak euro and Norwegian crown as currencies that impact its results although the overall effect on reported profits would be neutral. "If rates remain at the average levels seen so far in 2015, these movements would be broadly offsetting for earnings," the company said in a statement. "However, for revenue we would expect a roughly 350 million-pound reduction from translation." Rolls-Royce shares were up 1.2 percent at 1029 pence by 0727 GMT, valuing the company at 18.9 billion pounds.
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