British aero-engine maker Rolls-Royce Holdings Plc plans to temporarily close factories, reduce working hours and cut benefits as part of new cost-cutting measures, the Financial Times reported on Monday.

Rolls-Royce to temporarily close factories, cut benefits - FT

Watch today in World Business Watch: One of the world's biggest plane engine maker Rolls Royce shares trade at 16-year low value.

Plane engine maker Rolls Royce shares trade at 16-year low value

March 15 in history: Incorporation of Rolls-Royce Limited, Nationalisation of Iran's oil industry and more!

European aerospace giant <a href="https://www.wionews.com/business-economy/airbus-defence-unit-sees-cash-challenge-adopts-efficiency-plan-254715">Airbus </a>said Tuesday that it has reached an "agreement in principle" with French, British and <a href="https://www.wionews.com/world/us-top-court-sides-with-trump-on-immigrant-welfare-benefits-276959">US</a> authorities over corruption investigations, which might help it avoid expensive litigation.

Airbus has been the subject of corruption probes in all three countries and said it released the statement in response to press reports.

The Financial Times reported Monday that Airbus, which employs 134,000 staff and contributes significantly to the economic output of its major backers <a href="https://www.wionews.com/business-%26-economy/airbus-set-to-close-deal-for-majority-stake-in-bombardier-cseries-143078">France</a> and <a href="https://www.wionews.com/world/coronavirus-outbreak-deadly-virus-continues-to-spread-outside-china-276966">Germany</a>, might have to pay more than 3.0 billion euros&nbsp; to settle the corruption probes.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/airbus-beats-goal-with-863-jet-deliveries-in-2019-ousts-boeing-from-top-spot-271445">Airbus beats goal with 863 jet deliveries in 2019, ousts Boeing from top spot</a>

The affair began as an internal investigation and was a factor in a more than year-long executive shake-up at Airbus that ended in April 2019 when Guillaume Faury replaced Tom Enders as chief executive.

The <a href="https://www.wionews.com/world/eu-not-to-ban-huawei-in-europe-but-to-impose-strict-rules-european-commissioner-breton-277078">United Kingdom</a>'s Serious Fraud Office (SFO) and its French equivalent, the PNF, told AFP Tuesday that they would not comment on the statement or report.

"These agreements are made in the context of investigations into allegations of bribery and corruption as well as compliance with the <a href="https://www.wionews.com/business-economy/us-imposes-record-75-billion-tariffs-on-european-union-256583">US</a> International Traffic in Arms Regulations," Airbus said.

"They remain subject to approval by French and UK courts and (the) US court and regulator."

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/sale-of-120-jets-worth-11-billion-finalised-airbus-188085">Sale of 120 jets worth $11 billion finalised: Airbus</a>

The amount of the potential settlement is roughly equivalent to the group's 2018 net profit.

Airbus is to release its 2019 results on February 13, when the company may provide more detail on the affair's potential cost.

"For legal reasons, Airbus cannot make any comments on the details of its discussions with the investigating authorities," the statement said.

Airbus has been under investigation for financial irregularities in France and Britain, having approached the authorities itself in 2016.

The US also launched a probe into the company later.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/airbus-ups-estimate-of-20-year-demand-for-new-planes-250372">Airbus ups estimate of 20-year demand for new planes</a>

In 2013, Airbus found irregularities, notably in commission levels, in some transactions carried out by its Strategy and Marketing Organization unit.

Commercial agents for some transactions had not been identified to government export aid agencies.

Meanwhile, US authorities suspect that Airbus did not obtain necessary approval for the export of some military equipment that contained US components.

Airbus manufactures civilian and military aircraft from drones and helicopters to long-haul airliners, along with rockets, satellites and communications systems.

The procedure launched by Airbus in France should allow it to negotiate the amount of possible fines without prolonged legal proceedings that could make the final bill much higher.

The strategy has already been used by British engine maker <a href="https://www.wionews.com/business-%26-economy/rolls-royce-soars-as-ceo-east-sets-ambitious-mid-term-goals-144599">Rolls-Royce</a>, which was ordered in early 2017 to pay 763 million euros to Brazilian, British and US authorities in connection with corruption that it had itself reported to the SFO in late 2012.

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European aerospace giant Airbus said Tuesday that it has reached an "agreement in principle" with French, British and US authorities over corruption investigations, which might help it avoid expensive litigation.

European aerospace giant Airbus said Tuesday that it has reached an "agreement in principle" with French, British and US authorities over corruption investigations, which might help it avoid expensive litigation. Airbus has been the subject of corruption probes in all three countries and said it released the statement in response to press reports. The Financial Times reported Monday that Airbus, which employs 134,000 staff and contributes significantly to the economic output of its major backers France and Germany, might have to pay more than 3.0 billion euros to settle the corruption probes. Also read: Airbus beats goal with 863 jet deliveries in 2019, ousts Boeing from top spot The affair began as an internal investigation and was a factor in a more than year-long executive shake-up at Airbus that ended in April 2019 when Guillaume Faury replaced Tom Enders as chief executive. The United Kingdom's Serious Fraud Office (SFO) and its French equivalent, the PNF, told AFP Tuesday that they would not comment on the statement or report. "These agreements are made in the context of investigations into allegations of bribery and corruption as well as compliance with the US International Traffic in Arms Regulations," Airbus said. "They remain subject to approval by French and UK courts and (the) US court and regulator." Also read: Sale of 120 jets worth $11 billion finalised: Airbus The amount of the potential settlement is roughly equivalent to the group's 2018 net profit. Airbus is to release its 2019 results on February 13, when the company may provide more detail on the affair's potential cost. "For legal reasons, Airbus cannot make any comments on the details of its discussions with the investigating authorities," the statement said. Airbus has been under investigation for financial irregularities in France and Britain, having approached the authorities itself in 2016. The US also launched a probe into the company later. Also read: Airbus ups estimate of 20-year demand for new planes In 2013, Airbus found irregularities, notably in commission levels, in some transactions carried out by its Strategy and Marketing Organization unit. Commercial agents for some transactions had not been identified to government export aid agencies. Meanwhile, US authorities suspect that Airbus did not obtain necessary approval for the export of some military equipment that contained US components. Airbus manufactures civilian and military aircraft from drones and helicopters to long-haul airliners, along with rockets, satellites and communications systems. The procedure launched by Airbus in France should allow it to negotiate the amount of possible fines without prolonged legal proceedings that could make the final bill much higher. The strategy has already been used by British engine maker Rolls-Royce, which was ordered in early 2017 to pay 763 million euros to Brazilian, British and US authorities in connection with corruption that it had itself reported to the SFO in late 2012.

Airbus strikes anti-corruption deals with France, UK, US

Rolls Royce Motor Cars, the maker of ultra-luxury automobiles, launched its first-ever Sport Utility Vehicle (SUV) Cullinan in India on Thursday. The SUV derives its name Cullinan, from one of the largest diamonds ever found.

The car is powered by a 6.75L V12, twin turbo engine that delivers 563 horsepower and 850 Nm of peak torque. The company is calling it an 'Effortless Everywhere SUV' that feels equally at-home while off-roading and while navigating the city.

Rolls Royce executives said the vehicle underwent design and testing for several years, across extreme climatic conditions. The company claims that vehicle was extensively tested in icy conditions, the deserts of Dubai and Scottish Highlands.

The Cullinan comes as an addition to the line-up of five cars that the British carmaker had launched in the last five years. The past launches included the two-door GT, the Dawn, Wraith, Ghost and Phantom 8.

One glance at the car and the iconic design elements of the Roll Royce family such as the large front grille with the RR logo, 'Spirit of Ecstasy' hood ornament above the logo are unmissable.

As an additional accessory, buyers can also opt for twin electronically deployed seats that emerge out of the base of the boot along with a cocktail table in the middle.

The car is available in a staggering 44,000 colour options and the executives from the company say that they also offer custom-colours based on customer choices. However, if you’re looking to get your hands on one, the waiting time is between nine and 11 months. Buyers in India would also have to shell out around 250 per cent of import duty on the luxury car.

Rami Jourdi, Regional PR Manager for the company, said that there has been an overwhelming response in India for the Cullinan and customers have already placed orders. He also added that 2018 was a very successful year for the company with 4,107 cars delivered to customers. "When compared to 2017, we grew 22per cent and India was a part of the success," he added.

Speaking of customers who had expressed interest in the Cullinan he said, most of the customers are new and many of them are ones who added this car to their Rolls Royce collection. He also emphasized on the luxury brand’s aim to expand across India beyond their existing dealership and showrooms in Chennai, Delhi and Hyderabad. South India continues to be an important market for Rolls Royce, he added.

Rolls Royce Motor Cars, the maker of ultra-luxury automobiles, launched its first-ever Sport Utility Vehicle (SUV) Cullinan in India on Thursday. The SUV derives its name Cullinan, from one of the largest diamonds ever found.

Rolls Royce Motor Cars, the maker of ultra-luxury automobiles, launched its first-ever Sport Utility Vehicle (SUV) Cullinan in India on Thursday. The SUV derives its name Cullinan, from one of the largest diamonds ever found. The car is powered by a 6.75L V12, twin turbo engine that delivers 563 horsepower and 850 Nm of peak torque. The company is calling it an 'Effortless Everywhere SUV' that feels equally at-home while off-roading and while navigating the city. Rolls Royce executives said the vehicle underwent design and testing for several years, across extreme climatic conditions. The company claims that vehicle was extensively tested in icy conditions, the deserts of Dubai and Scottish Highlands. The Cullinan comes as an addition to the line-up of five cars that the British carmaker had launched in the last five years. The past launches included the two-door GT, the Dawn, Wraith, Ghost and Phantom 8. One glance at the car and the iconic design elements of the Roll Royce family such as the large front grille with the RR logo, 'Spirit of Ecstasy' hood ornament above the logo are unmissable. As an additional accessory, buyers can also opt for twin electronically deployed seats that emerge out of the base of the boot along with a cocktail table in the middle. The car is available in a staggering 44,000 colour options and the executives from the company say that they also offer custom-colours based on customer choices. However, if you’re looking to get your hands on one, the waiting time is between nine and 11 months. Buyers in India would also have to shell out around 250 per cent of import duty on the luxury car. Rami Jourdi, Regional PR Manager for the company, said that there has been an overwhelming response in India for the Cullinan and customers have already placed orders. He also added that 2018 was a very successful year for the company with 4,107 cars delivered to customers. "When compared to 2017, we grew 22per cent and India was a part of the success," he added. Speaking of customers who had expressed interest in the Cullinan he said, most of the customers are new and many of them are ones who added this car to their Rolls Royce collection. He also emphasized on the luxury brand’s aim to expand across India beyond their existing dealership and showrooms in Chennai, Delhi and Hyderabad. South India continues to be an important market for Rolls Royce, he added.

Rolls Royce unveils its first-ever SUV Cullinan in India; priced at Rs 6.95 crore

British engine maker Rolls-Royce slumped into a record &pound;4-billion annual net loss in 2016, ravaged by a Brexit-fuelled collapse in the pound and a corruption fine.

The loss after tax, equivalent to $5.0 billion or 4.8 billion euros, contrasted with a slender profit of &pound;84 million in the 2015, the company said in a results statement.

Rolls took a vast &pound;4.4-billion hit from the drop in the value of the pound in the wake of Britain&#39;s shock EU exit referendum, alongside a &pound;671-million penalty to settle bribery allegations.

The London-listed company, whose engines are used in Airbus and Boeing aircraft, added that underlying pre-tax profits almost halved to &pound;813 million.

Rolls-Royce, which also makes power systems for use on land and at sea, stated it was on track with efforts to slash costs and expected a &quot;modest&quot; performance improvement in 2017.

&quot;2016 has been an important year as we accelerated the transformation of Rolls-Royce,&quot; said chief executive Warren East, who has overseen a radical restructuring.&nbsp;

&quot;We have made operational progress and performed ahead of our expectations for the year as a whole.

&quot;At the same time, we have delivered major changes to our management and processes and, while we have made good progress in our cost cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business.&quot;

The huge annual loss also follows a tough past few years for Rolls, which faced a string of profit warnings on the back of weak demand in its aerospace and marine markets.

The company was fined &pound;671 million in January to settle bribery and corruption claims probed by Britain&#39;s Serious Fraud Office and authorities in Brazil and the United States.

Rolls will pay the penalty over five years but has taken the full cost as an impairment charge against its 2016 profits.

Pound slump

The pound has meanwhile fallen by almost a fifth against the dollar since the Brexit referendum that was held last June.

The slide is pushing up the costs of imported goods, sending British annual inflation to the highest levels in 2.5 years.

Official data Tuesday showed 12-month consumer price inflation rising to 1.8 per cent in January -- the highest level since June 2014.

&quot;Surging inflation, in particularly food and fuel prices, are eating into disposable incomes and in turn that is starting to hit spending,&quot; said ING bank economist James Smith.

&quot;We expect to see further evidence of this in this week&#39;s retail sales data.&quot;

Looking ahead for Rolls, East told reporters that 2017 would be &quot;challenging&quot; for the embattled group.

&quot;We have to look after the short term or there won&#39;t be a long term.&quot;

In morning deals, Rolls-Royce shares slid but analysts described the move as a &quot;kneejerk&quot; reaction.

Around 1000 GMT, the stock was down 4.9 per cent at 704.50 pence, topping the losers&#39; board on London&#39;s benchmark FTSE 100 index.

Analysts remained bullish over the firm&#39;s performance.

&quot;The company chalked up one of the biggest losses in corporate history -- but it&#39;s not as bad as it looks and that is perhaps why we&#39;re seeing the stock coming back a tad after the initial kneejerk,&quot; said Neil Wilson at trading firm ETX Capital.

&quot;Rolls took a &pound;4.4-billion hit from the weak pound following the EU referendum last June and it was fined &pound;671 million to settle bribery charges. Strip those out and the results do not look half as bad.&quot;

(AFP)

The huge annual loss also follows a tough past few years for Rolls on the back of weak demand in aerospace and marine markets

British engine maker Rolls-Royce slumped into a record £4-billion annual net loss in 2016, ravaged by a Brexit-fuelled collapse in the pound and a corruption fine. The loss after tax, equivalent to $5.0 billion or 4.8 billion euros, contrasted with a slender profit of £84 million in the 2015, the company said in a results statement. Rolls took a vast £4.4-billion hit from the drop in the value of the pound in the wake of Britain's shock EU exit referendum, alongside a £671-million penalty to settle bribery allegations. The London-listed company, whose engines are used in Airbus and Boeing aircraft, added that underlying pre-tax profits almost halved to £813 million. Rolls-Royce, which also makes power systems for use on land and at sea, stated it was on track with efforts to slash costs and expected a "modest" performance improvement in 2017. "2016 has been an important year as we accelerated the transformation of Rolls-Royce," said chief executive Warren East, who has overseen a radical restructuring. "We have made operational progress and performed ahead of our expectations for the year as a whole. "At the same time, we have delivered major changes to our management and processes and, while we have made good progress in our cost cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business." The huge annual loss also follows a tough past few years for Rolls, which faced a string of profit warnings on the back of weak demand in its aerospace and marine markets. The company was fined £671 million in January to settle bribery and corruption claims probed by Britain's Serious Fraud Office and authorities in Brazil and the United States. Rolls will pay the penalty over five years but has taken the full cost as an impairment charge against its 2016 profits. Pound slump The pound has meanwhile fallen by almost a fifth against the dollar since the Brexit referendum that was held last June. The slide is pushing up the costs of imported goods, sending British annual inflation to the highest levels in 2.5 years. Official data Tuesday showed 12-month consumer price inflation rising to 1.8 per cent in January -- the highest level since June 2014. "Surging inflation, in particularly food and fuel prices, are eating into disposable incomes and in turn that is starting to hit spending," said ING bank economist James Smith. "We expect to see further evidence of this in this week's retail sales data." Looking ahead for Rolls, East told reporters that 2017 would be "challenging" for the embattled group. "We have to look after the short term or there won't be a long term." In morning deals, Rolls-Royce shares slid but analysts described the move as a "kneejerk" reaction. Around 1000 GMT, the stock was down 4.9 per cent at 704.50 pence, topping the losers' board on London's benchmark FTSE 100 index. Analysts remained bullish over the firm's performance. "The company chalked up one of the biggest losses in corporate history -- but it's not as bad as it looks and that is perhaps why we're seeing the stock coming back a tad after the initial kneejerk," said Neil Wilson at trading firm ETX Capital. "Rolls took a £4.4-billion hit from the weak pound following the EU referendum last June and it was fined £671 million to settle bribery charges. Strip those out and the results do not look half as bad." (AFP)

Brexit- and penalty-hit Rolls-Royce slumps to record $5 billion net loss

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