Rolls-Royce hits brakes on buy-back plan
Rolls-Royce chief executive officer Warren East put the engine-maker's troubles under a spotlight on his second day in the job, a break from his predecessor's cautious approach to updating investors.
East halted a share buy-back to preserve dwindling cash, and said full-year pre-tax profit will be between £1.3bn (€1.8bn) and £1.47bn, compared with a previous estimate of £1.55bn.
The announcement yesterday prompted the stock's biggest fall in eight and a half months.
"It's not how I envisioned my first communication with the market," East said on an investor call. The new CEO faces sluggish marine-engine sales and a fall-off in demand for A330 jetliner engines.