Rolls-Royce Says Cost Savings on Track, Trading Tough
November 16 2016 - 3:14AM
Dow Jones News
By Robert Wall
LONDON--British engine maker Rolls-Royce Holdings PLC said it is
on track for the top end of a cost-savings target though it warned
demand for ship engines would remain weak next year.
The company, which repeatedly missed profit targets last year,
is in the middle of restructuring its business, cutting staff,
replacing much of its top management and streamlining operations to
deliver GBP150 million ($187 million) to GBP200 million in savings
from next year.
Rolls-Royce said on Wednesday that savings would be at the top
end of that range.
The company, which builds aircraft engines for long-range
jetliners made by Boeing Co. and Airbus Group SE, warned that
market conditions remain volatile. Demand for business jet engines
has weakened and sales of marine engines for vessels serving the
oil and gas market would remain depressed next year.
The company left unchanged its guidance for a decline in revenue
and profit this year.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
November 16, 2016 02:59 ET (07:59 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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