Rolls-Royce Confirms £900m Gas Turbine Siemens Talks
Rolls-Royce Confirms £900m Gas Turbine Siemens Talks: The industrial RB211 is derived from the aerospace RB211, which is the chosen power plant for several large airlinersRolls-Royce

Rolls-Royce shares opened 2% down after the British engineering giant revealed that it would post flat revenue and profit for 2014.

The Rolls-Royce stock price edged to the downside, but retraced some of its losses shortly after to reach 1,046p, after the group confirmed in a statement that its performance would be weighed down by a one-off charge in the second half of this year.

It warned that, at current foreign exchange rates, it could result in £300m (€365m, $507m) being knocked off the group's revenue by the end of the year and another £40m off its profit.

"The group's financial performance in 2014 is expected to be weighted to the second half of the year, with around two thirds of the full year 2014 profit being generated in the second half," said Rolls-Royce, the world's second largest engine maker behind General Electric, in a statement.

"We remain confident that the Group will resume growth in 2015."

Over the past six months, British sterling has risen around 4% against the US dollar.

Meanwhile, Rolls-Royce reiterated that it is in talks with Siemens to sell its energy gas turbine and compressor business for £900m.

"These talks have not concluded and we will make a further announcement in due course" but added that if the deal is completed, it will put the cash towards the £1.8bn purchase of Daimler's 50% stake in their power systems joint-venture," it said.

The business Rolls-Royce is aiming to sell to Siemens supplies aero-derivative gas turbines, compressor systems and related services to customers in the oil and gas and Power Generation sectors.