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Rolls-Royce 2017 profit beats, cautious on this year

LONDON, March 7 (Reuters) - British engine-maker Rolls-Royce reported a 25 percent rise in annual profit, beating expectations, as it guided that 2018 results would be impacted by costs related to carrying out repairs on some existing aero-engines.

Full-year underlying pretax profit of 1.071 billion pounds ($1.5 billion) compared to a consensus forecast of 878 million pounds, was boosted by the delivery of more aero-engines and from its power systems unit which makes large diesel engines.

For the current year, Rolls issued guidance under a new accounting standard, forecasting a wide range of outcomes, which could see profit rise or fall, impacted by the costs of carrying out repairs on its Trent 1000 engines.

But the company said it remained on track to meet its goal of generating free cash flow of 1 billion pounds by around 2020. ($1 = 0.7196 pounds) (Reporting by Sarah Young, Editing by Paul Sandle)