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Profit warning wipes 20% off Rolls-Royce

Rolls RoyceThur: Rolls-Royce saw 20% wiped off its value as its shares slumped to 536.5p after issuing its fourth profit warning in just over a year.

The engine maker may also cut its dividend because of weaker demand for spares and service.

Its announcement helped BAE Systems which gained 3.8%, despite saying it could see no growth in earnings in 2015 and that it would cut jobs in Britain and Australia.

Sainsbury’s also fell 3.3%, a day after reporting lower profits and warning of more price cuts to come.

Luxury fashion accessories retailer Burberry posted a rise in first half pre-tax profit but warned that the market environment remains challenging. For the six months to the end of September, adjusted pre-tax profit rose to £153m from the same period last year, while revenue was unchanged at £1.1bn. Reported pre-tax profit was up 9% to £155m.

The FTSE 100 closed at 6,178.68, down 118.52 (1.88%).

 

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