Pound collapse costs Rolls Royce $5.5 billion

AP News
Posted: Feb 14, 2017 7:41 AM
Pound collapse costs Rolls Royce $5.5 billion

LONDON (AP) — British engineering company Rolls Royce says that the collapse in the pound's value has cost it some 4.4 billion pounds ($5.5 billion).

The company, which makes engines for aircraft, among other things, said Tuesday that the pound's near-20-percent drop against the dollar since Britain's June vote to leave the European Union forced it to mark lower the value of certain financial contracts.

On top of that, the company paid 671 million pounds to settle bribery allegations with regulatory authorities.

That caused the company to book a full-year net loss of 4 billion pounds, compared with profit of 84 million pounds in 2015. Revenues rose to 15 billion pounds from 13.7 billion pounds

The company no longer produces the Rolls Royce luxury cars, which are made by BMW.