British aerospace group Rolls-Royce said today pre-tax profit before exceptional items plunged 46 per cent in 2002 from the previous year.
The engine-maker, which has been battling a steep downturn in the airline industry, reported pre-tax profit excluding exceptional items of £255 million sterling (€369.4 million) down from £475 million in 2001.
The 2002 figure was in line with analysts' forecasts ranging from £250 to £262 million.
Sales dropped 9 per cent to £5.788 billion, the group said.
Rolls-Royce also said its pension fund deficit deepened to £1.117 billion last year, nearly as much as the group's value on the stock market - £1.3 billion at the close of London trading yesterday.
The company provides up to £70 million a year into its pension fund but expects the figure to increase following an actuarial review expected to be completed by the end of this year.
Rolls-Royce warned in August it could take an additional £35 million charge to its profit-and-loss account and the current discussions are likely to focus on keeping the extra contribution within that range.
PA