Rolls Royce cuts profit forecasts for 2015 and 2016
British engineering company Rolls-Royce cut its profit forecasts for this year and next, citing continued weakness in oil and gas markets plus lower demand for some of its aero-engine programmes.
The downgrade, the latest in a series by the company, comes four days after new chief executive Warren East took the helm.
For 2016, Rolls-Royce said lower demand and pricing for its Trent 700 engines, reduced demand for its business jet engines and some weakness in its after-sales business would cut profits by £300m
Shares in Rolls-Royce dropped 7.6pc to 788.8 pence in early trading today.
Analysts at Jefferies said Rolls-Royce's new guidance appeared to forecast 2016 pretax profit of £1bn, 35 pc lower than their current estimate.
Rolls-Royce said 2015 profit would come in between £1.325bn and £1.475bn, as much as 5pc lower than it had previously guided, due to a further deterioration in energy markets which would affect sales of marine engines.