British aeronautical company Rolls-Royce (LON:RR) are set to announce further restructuring plans, after issuing its fourth profit warning in just over a year.
Recently appointed chief executive Warren East gave further details of his plans to turn around the company, reassuring investors that whilst the company is going through an “unprecedented period of change”, it is “vital to [the company’s] long term success”.
“Major restructuring will simplify the organisation, streamline senior management, reduce fixed costs and add greater pace and accountability to decision making,” the group said in a statement ahead of a presentation to investors.
“This is fundamental to ensuring Rolls-Royce best positions itself to compete for the long-term opportunities before us,” he said.
US-based activist investor ValueAct has recently doubled its stake in the company to 10 percent, making it the biggest investor by share and intensifying pressure on the company to reform its finances.
East has already detailed some of his plans, which will include cost-saving targets of between £150 – £200 million per year.
Shares in Rolls Royce plunged after its latest profit warning this month, which cited decreasing demand for marine engines and declines in its aero-engine business as reasons for its continued poor results.
