Britain's Rolls-Royce downgrades 2016 profit again

[LONDON] British engine-maker Rolls-Royce downgraded its profit forecast for 2016, its fourth profit warning in just over a year, blaming sharply weaker demand for spares and services to existing aero-engines.

Rolls-Royce said on Thursday that it now expected profit headwinds of 650 million pounds next year, up from the 300 million cut to profit it identified in July.

The company also launched a major restructuring programme for next year to reduce fixed costs, improve decision-making and save between 150 million pounds and 200 pounds a year.

REUTERS