Rolls Names COO Replacement; Marine Outlook Lowered

Rolls-Royce Holdings Plc, the second biggest maker of commercial aircraft engines, today named Alain Michaelis lead operations director to replace retiring Chief Operating Officer Mike Terrett.

Michaelis, Terrett’s deputy, who also runs the gas turbine supply chain operation, will take over the COO’s responsibility at a non-board level, according to the company. Michaelis joined Rolls-Royce in December 2008.

The appointment comes as Rolls-Royce also confirmed full-year guidance, while downgrading expectations for its Marine unit where ’’due to the phasing of deliveries, underlying revenue is now expected to be broadly flat.’’ It previously forecast a “modest increase.”

At company level Rolls expects “good growth in underlying revenue and underlying profit, with cash flow around break even,” the London-based company said. Civil Aerospace should see strong profit growth, defense modest growth and the energy business improving profit.

Guidance excludes the acquisition of the Tognum diesel engine business, which remains in process, and the disposal of Rolls’s share of the United Technologies Pratt & Whitney-led International Aero Engines joint venture building powerplants for Airbus SAS A320 single-aisle airliners.

(Corrects to say guidance excludes Tognum in last paragraph.)