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-43313866

The article has changed 6 times. There is an RSS feed of changes available.

Version 2 Version 3
Rolls-Royce back in profit as restructuring continues Rolls-Royce aircraft engine fix will take 'some years'
(about 1 hour later)
Rolls-Royce swung back into profit in 2017 amid an ongoing restructuring drive at the engine maker. An engine fault that grounded planes at British Airways and other airliners will take "some years" to fix, Rolls-Royce has said.
It comes after the firm posted the biggest loss in its history in 2016 due to settling corruption cases and currency hedges going wrong. The aerospace giant said parts in its Trent 1000 engines were wearing out faster than expected but that it "had a solution" to the problem.
In the year to 31 December 2017 profit before tax jumped to £4.9bn - up from a loss of £4.6bn the year before. Revenue climbed 9% to £16.3bn. It came as Rolls-Royce reported better-than-expected results for 2017, following a record loss in 2016.
Chief executive Warren East said the firm was making "good progress". However, it signalled job losses ahead as the firm continues to cut costs.
Profits were boosted by the delivery of more aero-engines, and by its power systems unit which makes large diesel engines. In December, Air New Zealand became the latest airliner to ground some of its flights because of problems with its Rolls-Royce engines.
It also saw a £2.6bn accounting boost from the recent strengthening of the pound. It said there had been "two recent events" involving Trent 1000 engines, one which required the plan to return to the airport after take-off.
Engine troubles Japan's ANA and Virgin Atlantic have also had problems.
However, the firm said its 2018 figures could be impacted by the cost of carrying out repairs on its Trent 1000 engines, which have suffered technical problems. Rolls-Royce said up to 500 Trent 1000 engines - used on Boeing 787 planes - and some Trent 900 engines had technical problems.
In December, Air New Zealand became the latest airliner to ground some of its flights because of problems with the engines. Japan's ANA and Virgin Atlantic have also reported problems. Boss Warren East told BBC Radio 4's Today programme: "First you have to realise that all mechanical things wear out over time, and some of the parts in our Trent engines are wearing out faster than we originally forecast.
Mr East told the BBC: "First you have to realise that all mechanical things wear out over time, and some of the parts in our Trent 1000 engines are wearing out faster than we originally forecast. 'We have a plan'
"We're having to manage the operational impacts because it's quite disruptive for our customers. "We're having to manage the operational impacts because it's quite disruptive for our customers."
"We do know how to fix it. It will take some years actually to fully implement the modifications in all the engines which are in service." He added: "We have a solution, we have a plan, it will take some years to fully implement the modifications in all the engines which are in service."
The firm reported better than expected earnings for 2017, with profits before tax of £4.9bn.
It follows a £4.6bn loss in 2016 - the largest in Rolls-Royce's history - due to settling corruption cases and currency hedges going wrong, among other factors.
The news pushed shares in the company up by more than 14%.
The firm attributed its performance to stronger sales of aero and diesel engines, as well as a £2.6bn accounting boost from the recent strengthening of the pound.
Job losses?Job losses?
Mr East said Rolls-Royce continued to expand and would power around half of the world's wide body aircraft within a few years - up from a third currently. However, it said its 2018 figures could be impacted by the cost of carrying out the Trent engine repairs, and also that it would push ahead with a plan to "simplify its staff structure" to cut costs.
To cut costs it will also restructure its business from five business units into three - although Mr East declined to comment on whether this would cost jobs. This would see it reduce its number of business divisions from five to three.
The firm employs around 22,000 people in the UK, accounting for one in every 250 jobs in the country. Mr East suggested corporate roles would be affected but stressed the revamp was not set to affect engineers or technologists.
"It is too early to comment on specific numbers of jobs, but what I have been talking about for some time is we need to simplify our operation," he said. It comes after around 600 managers have left the group since 2015 under a previous overhaul.
"Clearly it's a much simpler structure if we are in three units instead of five." Rolls-Royce employs around 22,000 people in the UK, accounting for one in every 250 jobs in the country.
"It is too early to comment on specific numbers of job losses, but what I have been talking about for some time is we need to simplify our operation," Mr East said.