Rolls-Royce, the British maker of plane engines, said today it made a net loss of 1.34 billion pounds in 2008 which it blamed on the weak pound.
"The pace and extent of currency movements have had a significant effect on the group's financial reporting in 2008, with the sterling exchange rates against the dollar and the euro having the biggest impact," Rolls said in a statement.
Rolls had hedged, or taken a defensive position on futures markets, against the pound being stronger than it was.
The group's underlying performance which strips out the impact of currency fluctuations and one-off items was far rosier and the group said it was well positioned to weather the economic downturn.
Full-year underlying pre-tax profit increased by ten per cent to 880 million pounds.
"We have delivered a good set of results, with strong order intake, cash flow and underlying profit growth achieved in challenging conditions," Rolls' Chief Executive John Rose said in the earnings statement.
"2009 will be a very difficult year for the global economy. Our well diversified portfolio, the scale of our installed base and the strength of our balance sheet give us confidence that Rolls-Royce will respond successfully to current challenges and develop the business for the longer term," he added.
