Rolls-Royce Shares Drop On 2014 Growth Fears
The share price for aircraft engine maker Rolls-Royce has plunged over a growth forecast warning amid a decline in global defence spending.
In early Thursday trading its stock was down more than 12%.
Here is the latest share price for Rolls-Royce Holdings.
The fall comes despite promises by boss John Rishton that 2015 will see a return to growth.
He said: "In 2014, we expect a pause in our revenue and profit growth, reflecting offsetting trends across the business.
"This is a pause, not a change in direction, and growth will resume in 2015."
Rolls-Royce makes aero, land-based and marine power plants in Britain and a number of other countries.
Although it licenses the famous name and logo to the car maker, the firms are not connected.
More than half of its order book now comes from Asia and the Middle East.
The firm expects to see a drop of up to 20% from defence sales this year, along with lower orders for its marine unit - based in Norway.
However the company has expanded the civil aero sector, seeing a rising order book of 22% last year.
Rolls-Royce said its full-year results for 2013 showed a spike in group operating profits of 23% to £1.76bn, with its orders up 19% at £71.6bn.
But profit before tax fell 36% due to accounting adjustments in part linked to the consolidation of Tognum - a equal share joint venture with Daimler AG - and year-on-year net disposals.
Last December, the UK's Serious Fraud Office announced an investigation into the company over allegations of bribery and corruption at the firm in relation to possible wrongdoing in China, Indonesia and other markets.
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