Rolls-Royce CEO Faces Biggest Challenge After Slowing Slide
- East cheers City by maintaining outlook, reporting progress
- But dividend halved and management cut with more pain to come
A Trent 700 aircraft engine on the production line at the Rolls-Royce Holdings Plc factory.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Rolls-Royce Holdings Plc Chief Executive Officer Warren East impressed investors enough to send the engine-maker’s stock up the most in 12 years after ending a run of profit warnings and reporting that the beleaguered business is showing signs of stability.
In reality his toughest challenges may still lie ahead as Rolls-Royce braces for earnings to plunge this year and grapples with declining markets for offshore oil vessels, regional jets and business aircraft where it can do little more than trim engine production costs and wait for sales to revive.