Rolls-Royce crisis is a big test for microchip kingpin Warren East

London

WHEN microchip kingpin Warren East was named as the next chief executive officer of Rolls-Royce Holdings plc in April, the aircraft-engine maker highlighted his "outstanding record of innovation" and "strong commitment to R&D". Those aren't the attributes the company most needs now.

After a profit warning on Thursday wiped £2.5 billion (S$5.4 billion) off Rolls's value, Mr East is about to be tested on his ability to slash costs and rebuild the organisation and management of the Airbus and Boeing supplier while doubling output of some the most complex machines in the world.