Rolls-Royce vows to reach cost target
Analysts are sceptical about profit outlook after shortfall in first half
London — Rolls-Royce, the British jet engine maker battling to recover from a string of profit warnings, said cost savings would be at the top end of its target range in 2016 as it responds to tough conditions in some markets. The company, which makes engines for fighter jets, commercial aircraft, ships and nuclear submarines, is one year into a turnaround programme aimed at cutting costs after a slowdown in several of its biggest markets. But some analysts say it has a mountain to climb, having made just 15% of a consensus full-year profit forecast of £686m in the first half of the year. Rolls-Royce shares, which have recovered from a February low of 488.8p, were down 2.7% at 734.5p on Wednesday. "We have made steady progress in 2016 to date, delivering a ramp-up in large-engine production and implementing the first stage of our transformation programme," CEO Warren East said. "Overall, we remain comfortable that our expectations for profit and free cash flow remain achievable." Th...
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