This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-35557554
The article has changed 9 times. There is an RSS feed of changes available.
Version 3 | Version 4 |
---|---|
Rolls-Royce shares jump 14% despite dividend cut | Rolls-Royce shares jump 14% despite dividend cut |
(35 minutes later) | |
Aero engine giant Rolls-Royce's shares are up 14%, despite a 50% dividend cut and profit at the low end of forecasts. | Aero engine giant Rolls-Royce's shares are up 14%, despite a 50% dividend cut and profit at the low end of forecasts. |
The company, which has issued a string of profit warnings in recent years, made £1.35bn before one-offs. | The company, which has issued a string of profit warnings in recent years, made £1.35bn before one-offs. |
The chief executive said there would be further cost cuts on top of the £200m savings already planned. | The chief executive said there would be further cost cuts on top of the £200m savings already planned. |
The prospect of further efficiencies and the fact that Rolls ruled out issuing more shares are being welcomed by shareholders. | The prospect of further efficiencies and the fact that Rolls ruled out issuing more shares are being welcomed by shareholders. |
A rights issue of more shares would mean that the share of profits would be spread more thinly. | A rights issue of more shares would mean that the share of profits would be spread more thinly. |
The company said it had already made roughly 50% of those savings already announced. | The company said it had already made roughly 50% of those savings already announced. |
Rolls-Royce employs more than 21,000 people in the UK, with more than 12,000 employed at its Derby aerospace engines and submarines division, and over 3,000 in Bristol. | Rolls-Royce employs more than 21,000 people in the UK, with more than 12,000 employed at its Derby aerospace engines and submarines division, and over 3,000 in Bristol. |
Last year, the company announced 3,600 job cuts and warned that some of its 2,000 senior managers would depart. | Last year, the company announced 3,600 job cuts and warned that some of its 2,000 senior managers would depart. |
Rolls also said it had cut the two top layers of management by 20% and planned further cuts. | Rolls also said it had cut the two top layers of management by 20% and planned further cuts. |
It added that the initial exceptional restructuring charge for these changes would be £75m-100m this year. | It added that the initial exceptional restructuring charge for these changes would be £75m-100m this year. |
Russ Mould, investment director at AJ Bell, said in a note: "Investors breathed a sigh of relief that the group did not issue a further profit warning and that it only cut its dividend whereas many feared it might be scrapped." | |
'Accounting fog' | 'Accounting fog' |
As well as its world-famous plane engines, the company also makes engines for the UK nuclear submarine fleet. | As well as its world-famous plane engines, the company also makes engines for the UK nuclear submarine fleet. |
Its recent troubles have alarmed the government to the extent that the Business Minister, Anna Soubry, said in December that the government was "monitoring the situation carefully". | Its recent troubles have alarmed the government to the extent that the Business Minister, Anna Soubry, said in December that the government was "monitoring the situation carefully". |
The next generation of nuclear submarines, due to be deployed by 2030, is being planned by the government. | The next generation of nuclear submarines, due to be deployed by 2030, is being planned by the government. |
Chief executive Warren East, who joined the company in July, has said an "accounting fog" had developed that had left investors unclear about its direction. | Chief executive Warren East, who joined the company in July, has said an "accounting fog" had developed that had left investors unclear about its direction. |
Mr East said: "In the context of challenging trading conditions, our overall performance for the year was in line with the expectations we set out in July 2015. | Mr East said: "In the context of challenging trading conditions, our overall performance for the year was in line with the expectations we set out in July 2015. |
"It was a year of considerable change for Rolls-Royce: in our management, in some market conditions and in our near-term outlook." | "It was a year of considerable change for Rolls-Royce: in our management, in some market conditions and in our near-term outlook." |
He added that there were some positive notes, including the underlying growth of long-term markets and a growing order book. | He added that there were some positive notes, including the underlying growth of long-term markets and a growing order book. |
To add to the company's problems, it is the subject of an investigation by the Serious Fraud Office. | To add to the company's problems, it is the subject of an investigation by the Serious Fraud Office. |
Rolls said it was continuing to co-operate with the authorities in the UK, the US and elsewhere, but was unable to give any further details or a timescale for when the investigation would end. | Rolls said it was continuing to co-operate with the authorities in the UK, the US and elsewhere, but was unable to give any further details or a timescale for when the investigation would end. |