Rolls-Royce Names Simon Kirby as Chief Operating Officer
September 12 2016 - 1:00AM
Dow Jones News
LONDON—British aircraft-engine maker Rolls-Royce Holdings PLC
has appointed Simon Kirby as chief operating officer as it labors
to boost profitability.
The move is the latest by Chief Executive Warren East to rebuild
Rolls-Royce in the wake of a series of profit warnings. The
company, which is no longer affiliated with the luxury car maker,
is bracing for a big ramp-up in production of its commercial
aircraft engines to satisfy demand for Airbus Group SE and Boeing
Co. long-range jets.
Mr. Kirby, 51 years old, currently runs government-owned HS2
Ltd., the company charged with building a new high-speed rail
system in the U.K. He will join Rolls-Royce in the newly created
position in the coming months, the London-based company said
Saturday.
Mr. Kirby, who previously held jobs in the British defense
industry, will be responsible for overseeing efforts to simplify
Rolls-Royce's operations in a bid to boost returns, Rolls-Royce
said.
Rolls-Royce has been struggling with weak demand for some of its
aircraft engines. The prolonged slump in oil prices also has damped
sales of its marine and power-systems units. The London-based
company this year announced the first cut in its dividend since
1992 to deal with falling earnings.
Last year, it appointed Mr. East as its CEO. He has since been
pushing the company to more quickly revamp its operations to
recover from a series of earnings missteps. The company has cut
thousands of jobs, including thinning out management ranks to
become more responsive to volatile market conditions.
Mr. East said the new chief operating officer, who won't be a
board member, would play a "critical role" as Rolls-Royce boost
aircraft engine output, grow the nuclear power unit, and implement
efforts to cut costs at the company.
Rolls-Royce in July said it made an underlying profit of only £
77 million ($102 million) in the first six months of the year. The
company suffered a £ 1.8 billion loss in the period after a
mark-to-market noncash revaluation of U.S. currency hedges in the
wake of the sharp fall in sterling after Britain's vote to leave
the European Union.
Rolls-Royce also has seen U.S. activist investor ValueAct
Capital Management LP become its largest shareholder with a stake
of more than 10%. In March, Rolls-Royce appointed Bradley Singer,
ValueAct's chief operating officer, to the board.
Rolls-Royce chairman Ian Davis in May told shareholders the path
to financial recovery would take time. The company expects a
decline in sales and profit this year.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
September 12, 2016 00:45 ET (04:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Rolls Royce (PK) (USOTC:RYCEY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Rolls Royce (PK) (USOTC:RYCEY)
Historical Stock Chart
From Sep 2023 to Sep 2024