ROLLS-ROYCE

Results to Reflect Currency Swings

Rolls-Royce Holdings PLC said currency movements will provide less of a boost to its performance this year than previously forecast though the British engine maker is yet to take into account the slump in the country's currency after the vote to leave the European Union.

Rolls-Royce said on Tuesday that currency swings should increase revenue by about GBP400 million ($532 million) and underlying pretax profit by around GBP40 million, before taking into account the extra benefit of the steep fall in the value of sterling since last Friday.

In May, the aircraft engine maker predicted currency-related revenue and profit gains of GBP450 million and GBP50 million, respectively. The referendum's outcome "will have no immediate impact on our day-to-day business," the company said.

Rolls-Royce, which supplies Boeing Co. and Airbus Group SE planes, had wanted the U.K. to remain in the EU.

"The medium and long term effect will depend upon the relationships that are established between the U.K., the EU and the rest of the world over the coming years," it said.

The British pound stabilized in Asia trading on Tuesday, a reprieve for the battered currency after a nearly 12% decline following the U.K.'s Brexit vote.

Rolls-Royce, which no longer is affiliated with the luxury car maker of the same name, said business in the first few months of 2016 was in-line with plans, while first-half results would be "close to break-even." The company in May said profit for the full-year would be generated principally in the second half.

--Robert Walls

BIRCHBOX

Online-Beauty Firm Cuts Staff, Executives

Online beauty startup Birchbox Inc. is parting ways with several senior executives and cutting about 12% of its staff, the second round of layoffs this year, as the company struggles with increased competition and a difficult funding market.

The New York-based company on Tuesday said it dismissed about 30 of its 250 employees. In January, the company laid off about 50 workers.

Recent departures include some senior executives, including co-founder Mollie Chen, chief technology officer Liz Crawford and Benjamin Fay, a former Apple Inc. executive who joined Birchbox last year, people familiar with the matter said.

Mr. Fay declined to comment. Ms. Crawford and Ms. Chen, who was until recently the company's editorial director and will remain an adviser, couldn't immediately be reached.

"Today's climate demands growth companies make changes to show a more immediate path to profitability, conserve cash in uncertain times and rethink cost structures," co-founder and Chief Executive Katia Beauchamp wrote in a message posted to Medium.

The Wall Street Journal reported earlier this month that Birchbox's talks with potential investors had failed to result in a deal and that Birchbox had suspended plans to open physical retail stores in the U.S. and expand into overseas markets such as China.

The company, which ships samples of beauty products for $10 a month, hasn't secured funding in more than two years, when a $60 million investment valued the young company at $485 million. Also the business of mailing of beauty products has become much more crowded field.

--Khadeeja Safdar

CARNIVAL

Strong Bookings, Low Costs Help Earnings

Carnival Corp. said its earnings soared in its latest quarter as the cruise-ship company benefited from lower costs and better-than-expected revenue.

Its shares rose 24 cents to $43.97 apiece in late trading on Tuesday as per-share earnings, excluding certain one-time items, topped expectations.

"This is shaping up to be another strong year," Chief Executive Arnold Donald said, touting a recent dividend increase and approval on Monday of an additional $1 billion share repurchase.

Carnival shares had earlier fallen with the broader travel sector following Britain's vote to leave the European Union.

Carnival did project earnings for the current quarter below analysts' expectations. The company forecast per-share earnings of $1.83 to $1.87, while analysts polled by Thomson Reuters expected per-share profit of $1.98.

Carnival, which is dual-listed in the U.S. and the U.K., has benefited in recent quarters from low fuel prices, higher prices and strong bookings.

In its press release Tuesday, Carnival said bookings for the rest of the year are well ahead of the prior year at slightly higher prices. The company, which operates Carnival Cruise Lines as well as the Princess, Cunard and Holland America lines, also said that since March, bookings have been at higher prices but volumes have been running lower because there is less available inventory remaining this year.

Also the business of mailing of beauty products has become much more crowded field.

--Tess Stynes

 

(END) Dow Jones Newswires

June 29, 2016 02:49 ET (06:49 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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