Rolls Royce shares sank 9% after it announced its third profit warning and scrapped a £1 billion share buyback programme.
In a release to the market this morning, 131 year old Rolls Royce lower its profit guidance to £148 million for this year, down from £155 million.
The engineering firm saw weakness across most units with Civil Aerospace taking a £300m hit as demand for its Trent 700 product experienced slower sales. The Marine division also saw losses but to a lesser extent than Aerospace.
The management have seen it appropriate to discontinue the remainder of a £1 billion share buy programme following the disappointing results.
Rolls Royce have attributed their poor performance to oil price volatility and uncertainty at large customers such as Airbus.
“Our immediate priority is to find the performance improvements needed to deliver these goals and ensure that this world-class business continues to meet the needs of its customers and shareholders alike,” said Warren East, Chief Executive of Rolls Royce.
The fall has been met with a report from the FT who are speculating that the cheap shares may be too hard to resist for a predatory firm.
Rolls Royce shares are down 19% over the last year.