Rolls-Royce CEO Cuts Outlook, Halts Buyback in First Week on Job
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Rolls-Royce Holdings Plc Chief Executive Officer Warren East put the engine-maker’s troubles under a spotlight on his second day in the job, drawing a line under his predecessor’s more cautious approach to updating investors.
East halted a share buyback to preserve dwindling cash and said full-year pretax profit will be between 1.3 billion pounds ($2 billion) and 1.47 billion pounds, compared with a previous estimate of as much as 1.55 billion pounds. The announcement Monday prompted the stock’s biggest fall in 8 1/2 months.