- Rolls-Royce (OTCPK:RYCEY) shares are deep in the red after the company announced a weaker earnings outlook for this year and next and warned that it may cut its dividend.
- Pretax income for 2015 is now expected to be at the low end of its £1.33B-£1.48B range and earnings are expected to suffer a £650M ($990M) hit in 2016 due to declining demand for business-jet engines and maintenance services.
- It's the second profit warning for CEO Warren East, who issued his first only two days into taking the top job in July.
- Rolls-Royce shares -18.3% in London.