Britain's Rolls-Royce cuts 2016 profit forecast again
- 9 years ago
Britain's Rolls-Royce issued its fourth profit warning in just over a year and said it may cut its dividend due to sharply weaker demand for spares and services for existing aero-engines, showing the scale of the challenge facing its new CEO.
Shares in the engine maker plunged more than 20 percent in early Thursday trading after it forecast profit next year would now be more than 30 percent below a current consensus estimate, which analysts had already slashed after a warning in July.
Rolls-Royce, the 131-year-old company based in Derby, England, shocked investors in July when it said profits from its aero-engine business, its biggest unit which accounts for about half of profits and which it is counting on for future growth, would shrink in 2016.
Shares in the engine maker plunged more than 20 percent in early Thursday trading after it forecast profit next year would now be more than 30 percent below a current consensus estimate, which analysts had already slashed after a warning in July.
Rolls-Royce, the 131-year-old company based in Derby, England, shocked investors in July when it said profits from its aero-engine business, its biggest unit which accounts for about half of profits and which it is counting on for future growth, would shrink in 2016.