RYCEY Rolls Royce Holdings PLC (PK)

By Ian Walker

LONDON--Rolls-Royce Holdings PLC (RR.LN) said Tuesday it expects cost savings of 150 million pounds ($228.14 million) to GBP200 million a year from 2017, adding that the medium to long-term outlook for the engine-making group remains strong.

The British company, which has announced a series of profit warnings in the past year, said it is also planning to improve its communication with investors and further simplify its business, the result of the initial findings of Chief Executive Warren East's operational review.

Rolls-Royce maintains a strong portfolio of products and services providing highly differentiated, mission-critical, power systems, Mr. East said.

"My review has underpinned my confidence about the opportunities before us and I am convinced that our long-term outlook is positive," Mr. East said.

"It has also highlighted a number of areas where we can simplify the way we work, inject pace into our decision-making and responsiveness, and improve our operational gearing and operational effectiveness."

"This is fundamental to ensuring Rolls-Royce best positions itself to compete for the long-term opportunities before us," he added.

Rolls-Royce said earlier this month that its earnings outlook for next year had worsened and that it may cut its dividend, prompting the worst selloff in the company's stock in 15 years. The company has struggled to deliver on cost-cutting efforts and been hit by weakening demand for some civil aircraft engines, its largest profit contributor.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

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(END) Dow Jones Newswires

November 24, 2015 02:43 ET (07:43 GMT)

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