By Staff writer
UK giant blames lower oil prices, weaker demand for some aircraft engines as it downgrades profit forecast
Rolls-Royce on Monday issued its third profit warning in just over a year despite recently securing a $9.2 billion deal with Emirates Airline.
The UK-based company blamed lower oil prices and weaker demand for some of its aircraft engines.
The downgrade comes three months after Rolls-Royce had agreed its biggest ever order with the Dubai-based Emirates Airline.
The order will see Rolls-Royce providing Trent 900 engines to power 50 Airbus A380 superjumbos.
Rolls-Royce last issued a profit warning in February, and had previously said its 2015 profit would be between £1.4 billion ($2.17 billion) and £1.5 billion.
But on Monday, the engineering firm lowered its profit outlook again, this time to between £1.325 billion and £1.475 billion.
Following the announcement, the company's shares dropped nearly 9 percent in what is its worst day for stock since October 2014.
Plans were announced at the end of 2014 to cut 2,600 jobs, with falling commodity prices again cited as a reason for the move.
In a statement on the company’s website, chief executive Warren East said: "I am clearly disappointed by today's announcement and the impact this will have on our investors and employees.
"Notwithstanding the market developments, it is our responsibility to build a business that is sustainable and resilient no matter what is thrown at us and this will be my fundamental priority for the next few years."For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.