Retirement of the Trent 800 plane by Malaysia and Singapore Airlines, which use Rolls engines, will leave the firm up to £150 million short as it cuts ongoing maintenance to the engines. A further £100 million hit will come from smaller corporate jets. Marine profits will also weaken by up to £100 million.
East will give investors more details about cost cuts at the end of month. The firm has already unveiled plans to shed about 3000 workers from aerospace and marine.
Meanwhile, BAE said it will reduce production of its Typhoon jets and lay off 371 staff.
Unions attacked the move. Unite national officer Ian Waddell said: “Cutting too far, too fast could led to a skills shortage for when orders pick up.”
Rolls also said 2015 pre-tax profit forecasts of between £1.33 billion and £1.48 billion would be at the lower end of the range. The company’s full-year dividend in 2014 was 23.1p and it unveiled a 9.27p half-year 2015 payout in July.
