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Rolls-Royce Mulls Disposal of Weaker Units as Profit Falls
- A fifth of engine giant’s business may be restructured or sold
- Company delivers muted outlook even as cash-flow improves
Rolls-Royce Profit Tops Estimates, Why Are Stocks Down?
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Rolls-Royce Holdings Plc Chief Executive Officer Warren East said the struggling aircraft-engine manufacturer will deepen costs cuts and restructure or sell the weakest parts of its business after profit dropped by almost half in 2016.
While around 80 percent of activities are in “a reasonably strong position in an attractive market,” the rest are on less solid ground and could be refocused or disposed of, East said on an earnings call Tuesday.