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| Rolls-Royce releases third profit warning | Rolls-Royce releases third profit warning |
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| Rolls-Royce has issued its third profit warning in just over a year, blaming lower oil prices and weaker demand for some of its aircraft engines. | Rolls-Royce has issued its third profit warning in just over a year, blaming lower oil prices and weaker demand for some of its aircraft engines. |
| Rolls last issued a profit warning in February, claiming the sharp fall in oil prices had "increased uncertainty for many of our markets and customers". | Rolls last issued a profit warning in February, claiming the sharp fall in oil prices had "increased uncertainty for many of our markets and customers". |
| It had previously said its 2015 profit would be between £1.4bn and £1.5bn. | It had previously said its 2015 profit would be between £1.4bn and £1.5bn. |
| But on Monday, the engineering firm lowered its profit outlook again, this time to between £1.325bn and £12.475bn. | But on Monday, the engineering firm lowered its profit outlook again, this time to between £1.325bn and £12.475bn. |
| Rolls-Royce shares fell nearly 9% to 780p on the profit warning. | |
| The engineering and aerospace firm had originally said profit in 2015 would be flat to 3% lower, when it surprised investors in February last year by issuing its first profit warning in a decade. | |
| In the end, underlying pre-tax profits in 2014 fell 8% to £1.62bn, roughly in line with expectations. | In the end, underlying pre-tax profits in 2014 fell 8% to £1.62bn, roughly in line with expectations. |
| Rolls also said it would halt its £1bn share buyback - of which it had completed £500m - as a result of falling profits. | Rolls also said it would halt its £1bn share buyback - of which it had completed £500m - as a result of falling profits. |
| Rolls-Royce said lower demand and pricing for its Trent 700 engines and reduced demand for its business jet engines would hit profits by £300m. | Rolls-Royce said lower demand and pricing for its Trent 700 engines and reduced demand for its business jet engines would hit profits by £300m. |
| "I am clearly disappointed by today's announcement and the impact this will have on our investors and employees," said Rolls-Royce chief executive Warren East. | "I am clearly disappointed by today's announcement and the impact this will have on our investors and employees," said Rolls-Royce chief executive Warren East. |
| "Notwithstanding the market developments, it is our responsibility to build a business that is sustainable and resilient, no matter what is thrown at us, and this will be my fundamental priority for the next few years." | "Notwithstanding the market developments, it is our responsibility to build a business that is sustainable and resilient, no matter what is thrown at us, and this will be my fundamental priority for the next few years." |
| Mr East joined Rolls-Royce as chief executive earlier this year from microchip manufacturer Arm Holdings, replacing John Rishton, who announced his retirement after a difficult four years in charge of the 131-year-old company. | Mr East joined Rolls-Royce as chief executive earlier this year from microchip manufacturer Arm Holdings, replacing John Rishton, who announced his retirement after a difficult four years in charge of the 131-year-old company. |