Rolls-Royce posted a record 4.6 billion loss ' and now shares are diving

LONDONRolls-Royce posted a record reported loss of 4.6 billion ($5.8 billion) on Tuesday as a fine to settle bribery charges and the collapse in the pound from Brexit capped a difficult few years for the British aero engine maker.In restructuring mode following a string of profit warnings, Rolls said more costs needed to be taken out of the business after its 2016 profit fell by 49 percent to 813 million pounds on an underlying basis - an outcome that did, however, exceed analysts' expectations.The group said it would maintain, rather than raise, its final dividend in order to retain a degree of financial flexibility."While we have made good progress in our cost cutting and efficiency programs, more needs to be done to ensure we drive sustainable margin improvements within the business," Chief Executive Warren East said."Over the next few months we will conclude our review of our strengths and investment opportunities and set out an appropriate vision for the business and the best way we can deliver sustainable shareholder value."Rolls-Royce has faced challenges across its business in recent years, weighing on its revenue and profit. That has prompted East, who took the job in 2015, to restructure the company to respond to changes in civil aviation and other sectors.The group said it expected "modest performance improvements" this year.Understandably given the results, shares in the firm are sliding on Tuesday morning, and around 8.15 a.m. GMT (3.15 a.m. ET), Rolls-Royce stock has dropped more than 2.5%, having fallen as much as 3.4% in the first couple of minutes of trade.Here is the chart:Commenting on investor reaction to the results, Ken Odeluga, a market analyst at City Index said in an email (emphasis ours):"Rolls-Royces statutory loss looks 500-600m than was widely expected, though it is unlikely to be a source of significant shareholder discontent on Tuesday. The disparity seems to reflect further deterioration of RRs hedge book after earlier assessments placed the hit around 3bn. Some investors may also have a restive reaction to the rather dry and narrow outlook comments, projecting only modest performance improvements and similar free cash flow generation as in 2016."Join the conversation about this storyNOW WATCH: 'It's a lie': Jake Tapper calls out Trump during a fiery interview with Kellyanne Conway
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