NEW YORK (TheStreet) -- Rolls-RoyceHoldings (RR) reported a 32% drop in half-year profits on Thursday, citing weaker demand for the Airbus A330ceo. The company said lower demand for the Airbus A330ceo from airlines creates headwinds for its Trent 700 engine deliveries for the second half of the year and into 2016.
The company also attributed the lower profits to weakness in its marine business. Rolls-Royce encountered softness in the offshore markets, which is now expected to temper its full-year 2015 and 2016 performance in its marine business.
"While these create a profit headwind in the near term, it is critical we successfully deliver our product launches, complete our supply chain transformation and sustain investment in our businesses to strengthen their competitive positions," said Rolls-Royce CEO Warren East, in a statement. "The initial phase of my ongoing operational review has and will continue to concentrate on how we drive improvements and sharpen our focus to make us a more resilient and sustainable business."
East added, "Despite the disappointment of our recent update, our second half outlook remains positive and full-year guidance for revenue, profit and cash issued on July 6th remains unchanged. The continued growth in our order book demonstrates the long-term demand for our innovative products and services, and underpins my confidence in the fundamental strength of our business."
Rolls-Royce reported that it secured its largest order ever to provide Trent 900 engines and service support to Emirates airline during the period. East said in the near term, the company is managing a transition to newer, more fuel-efficient engines like the Trent XWB, Trent 7000 and Trent 1000, while it attempts to mitigate the negative effects of the weakness in the offshore marine markets.