Rolls-Royce, one of the most renowned luxury car makers in the world, has posted biggest ever loss in its history.
The British luxury car maker posted a record loss of £4.6 billion ($5.7 billion) on Tuesday – the biggest in company’s history. The loss included a £4.4 billion write down on the value of financial hedges that Rolls-Royce uses to protect itself against currency fluctuations and a £671 million charge for the penalties the company has agreed to pay to settle bribery and corruption charges with the Serious Fraud Office, the US Department of Justice, and Brazilian authorities.
The penalties relate to charges that Rolls-Royce bribed middlemen around the world between 1989 and 2013 to win contracts.
Warren East, chief executive of Rolls-Royce, insists that the loss isn’t because the company’s business is suffering, but it is just an accounting measure.