By Daniel Hunter

Engineering firm Rolls-Royce Holdings has warned of falling revenues as a result of the trade sanctions imposed on Russia over the conflict in Ukraine.

The firm said some of its nuclear, energy and power systems clients had either delayed or cancelled orders.

Rolls-Royce Holdings now expects revenues for year to be 3.5-4% lower than forecasts. The engineering business expects profits to remain flat due to cost savings elsewhere.

In a statement, Rolls-Royce said: "Since our interim results, the economic outlook for 2015 has become more challenging."

Forecasts for its civil aerospace, defence aerospace, marine and power systems divisions, remained unchanged, the company said.

"While the short term is clearly challenging, reflecting the economic environment, the prospects for the group remain strong, driven by the growing global requirement for cleaner, better power," said chief executive John Rishton.

Shares were down as much as 7% in early trading.

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