Rolls-Royce says falls into first-half net loss

Rolls-Royce recorded a net loss in the first half of 2013 compared with a profit after tax one year earlier on changes to finance costs, the maker of aircraft engines said Thursday.

Rolls-Royce recorded a net loss in the first half of 2013 compared with a profit after tax one year earlier on changes to finance costs, the maker of aircraft engines said Thursday.

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The British company posted a loss after tax totalling $358 million ($550 million, 416 million euros) in the six months to June 30 compared with a net profit of $1.2 billion in the first half of 2012, Rolls-Royce said in an earnings statement.

Underlying pre-tax profits however surged by a third to $840 million, while revenues jumped 27% to $7.3 billion for the company whose engines are powering the new Airbus A350 wide-bodied planes.

"While underlying profits were up 34 percent... it is clear we have a lot more to do on cost," Rolls-Royce chief executive John Rishton said in the statement, adding that the company was maintaining its full-year profit estimates.