Captain Hornblower
14 Feb 2017
Re: Share price Am I right in saying the income generated by ongoing maintainable contracts for engines in service is as important to future revenue as selling new engines. These may well be in the individual airlines domestic currency or the dollar and not the £, thus the exchange turmoil.
LK Hyman
14 Feb 2017
Re: Share price Akis,"Looking at 2015 bottom line profit, a meagre 80 ml, the P/E in 2015 was ... a whopping 160 !!!"Everything depends on whether one looks at the reported numbers or the underlying numbers. The latter reduce the P/E to a more normal level.If I were a regulator (heaven forbid) I wouldn't allow companies to put the so-called underlying numbers right up next to the official reported numbers ... I'd force 'em to put them down in the notes. Lots of companies have so-called exceptional numbers year after year after year. OK, yes, they're usually related to different sorts of exceptionals, but, if a company has a long history of exceptionals, it becomes a fact that there's gonna be a big chunk of bad stuff every year, which makes the headline numbers the ones that a sensible investor will run his ratios on, with a bit of judicious tweaking for those exceptionals that really ARE exceptional.LKH on the flybridge
Akis1999
14 Feb 2017
Re: Share price I forgot to mention, just like Tesco back in the days of accounting fraud, RR shows massive interest payments for 2014 and 2015 called "Financing costs". These "costs" are AFTER all other operational and R&D costs, in other words what the heck are they? It defies belief that no one mentions this. How can you have "financing costs" to the tune of 1.3bn in 2014, 1.3bn in 2015, and 4.7 bn in 2016 !!!!! Is this a bank or a technology company? I am confused.
Akis1999
14 Feb 2017
Share price I wonder what it is hanging on. Defies belief. Maybe because of the iconic brand?If we look at 2015, we had a 160 ml profit (before tax etc) , SP was average 700 (eyeballing it) so that was an effective P/E of ... 80 !!!! 80 !!!Looking at 2015 bottom line profit, a meagre 80 ml, the P/E in 2015 was ... a whopping 160 !!!What did people expect from RR with a P/E of 80 at best or 160 for the more conservative investor?Now we look at 2016 and we have fraud, financial instruments speculation, dividend cut to 11.7p, totally uncovered by the way... The P/E currently is a joke.So I wonder what is the SP hanging on.
Akis1999
14 Feb 2017
Re: record loss "Some massive hits in these numbers."But it was published a couple of days ago, so no news? Hence the share price much stable?
Akis1999
14 Feb 2017
Re: RR FY Results Tues 14th So here it is"The loss was largely down to accounting charges linked to the slump in the pound, which affected the value of financial hedging products at the FTSE 100 giant."So airlines buy fuel futures in advance to lock in the price of their defining expense, oil, but I wonder what exactly did RR need to hedge on? I thought RR made engines, not speculate on financial products?
gamesinvestor
14 Feb 2017
record loss [link] progress but virtually no free cash flow this time around.Some massive hits in these numbers.Games
nk1999
13 Feb 2017
Re: RR FY Results Tues 14th Hardboy,"How does weak sterling increase the loss for (one of the) country's biggest exporter?"My take is that it is a one-off non-cash charge due to increased GBP value of their USD debt.The benefits of weak GBP will be felt in the future P&L accounts. And perhaps that is the reason why people are solowly turning positive on RR inspite of the massive loss expected for 2016.All IMHO. DYOR etc.nk
Hardboy
13 Feb 2017
Re: RR FY Results Tues 14th "Rolls-Royce set for record £4bn loss as weak sterling takes its toll"How does weak sterling increase the loss for (one of the) country's biggest exporter?
pearlsasinger
13 Feb 2017
Re: RR FY Results Tues 14th It is unlikely to be a Valentines Day Massacre?The lead up to Results has been carefully choreographed.PR will have been extremely busy.
Hydrogen Economy
13 Feb 2017
RR FY Results Tues 14th Telegraph Saturday warns "Rolls-Royce set for record £4bn loss as weak sterling and fines take their toll" Sunday it says "The City is awash with bullish broker notes ahead of Rolls-Royce’s full-year results. The engineering giant has already said full-year profits and cash were ahead of expectations after “a good finish to the year”. Both may be true, we'll find out tomorrow.It also notes that US activist investor ValueAct upped its stake in Rolls to 11pc. I hardly think that the long term prospects of RR will be uppermost in their thinking!H2[link] giant Rolls-Royce is poised to report a record £4bn loss on the back of the recent fall in sterling, just weeks after it was hit with a £671m fine for corruption.The historic loss is to be reported by the FTSE 100 firm when it announces its full-year results on Tuesday will include a £3.5bn writedown after the pound’s plunge hit the value of investments intended to protect the company against currency fluctuations.This, combined with the fine, means Rolls is expected to report a pre-tax loss of £4bn, its biggest in its 133-year history, with adjusted profits falling by more than 50pc....“Warren has been lowballing expectations as much as he can,” said one analyst. “It would look good for him to outperform after all the bad news.”[link] City is awash with bullish broker notes ahead of Rolls-Royce’s full-year results. The engineering giant has already said full-year profits and cash were ahead of expectations after “a good finish to the year”. After a tumultuous few years, 2016 was the first year without profit warnings since February 2014. Last week, JP Morgan said it thinks the results beat will be “reasonably material”, while Citi said they will mark the inflection point from “fire-fighting to looking to the future”.Meanwhile, Rolls’ received its second “buy” rating from UBS two weeks ago as analysts think investors will gain “more comfort” on management’s grip after the business. Last month, the FTSE 100 company reached an agreement with the Serious Fraud Office and US and Brazilian authorities that will see it pay £671m to settle bribery and corruption allegations. In recent weeks, US activist investor ValueAct upped its stake in Rolls to 11pc.
JoseFrio
09 Feb 2017
New £1.35bn order RR are on a roll (excuse pun)[link]
gamesinvestor
08 Feb 2017
Re: Jefferies/bribery scandal "My late mother often said:"wise woman your mum.Games
Hardboy
08 Feb 2017
Re: Jefferies/bribery scandal Your old mother probably kept all her money under the matrass then.
pearlsasinger
08 Feb 2017
Re: Jefferies/bribery scandal My late mother often said:Never invest in a company whose integrityappears somewhat lower than your own!
