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Rolls-Royce sticks to 2016 guidance

Reuters - UK Focus

LONDON, May 5 (Reuters) - British engineering company Rolls-Royce stuck to its outlook for 2016, a year which it has already said would be challenging, with profit expected to halve due to changes in the aero-engine market and weak demand from energy customers.

Rolls-Royce said ahead of its annual general meeting on Thursday that profit would be weighted towards the second half of the year, guiding that the first six months would be close to breakeven.

The company added that its 2016 expectations excluded the impact of foreign exchange rates which if they were to stay at current levels could boost reported pretax profit by about 50 million pounds ($72.61 million).

($1 = 0.6887 pounds) (Reporting by Sarah Young, Editing by Paul Sandle)