Rolls-Royce May Close More Marine Sites as Cost Cuts Deepen
- U.K. company sees no upturn in demand for offshore oil vessels
- CEO says savings at top end of targeted range, profit in line
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Rolls-Royce Holdings Plc is looking at closing more factories at its marine-equipment and ship-design unit and will shift some production to emerging economies as the lower price of crude hurts demand for oil-industry exploration and service vessels.
The offshore market is showing no sign of recovery, with the outlook bleaker as the backlog shrinks, Rolls-Royce, which is better known for its plane engines, said Wednesday. The Norway-based marine arm has already shut or sold 12 of its 27 sites, according to an investor briefing.