Rolls-Royce powers ahead with cost-cutting drive
Engine maker Rolls-Royce is to ramp up cost savings after warning investors that it faced a mixed outlook.
In a trading update, the group said it was on track to deliver savings at the top end of its target to slash costs by between £150 million and £200m.
It pointed to strong demand for engines for extra wide body civil aircraft, but a further weakening in business aviation and continuing woes in offshore oil and gas markets for marine, where the order book remains “very weak”.
Hargreaves Lansdown analyst George Salmon said: “Five profit warnings in the 20 months up to November 2015 means Rolls’ shareholders have had anything but a smooth ride recently. Operationally, the group is undergoing some major restructures.”