Rolls-Royce shares fall two per cent

Engine maker, Rolls-Royce dropped 2% on Monday morning, after the engine manufacturing firm scaled back their efforts to build the new Turkish fighter jet programme.

Rolls-Royce had a dispute over sharing intellectual property with Turkey’s Kale Group last year, and the potential involvement of a Qatari-Turkish company.

After a failed compromise, Rolls-Royce scrapped plans to win the bid to build the fifth-generation fighter jet.

Last month, Rolls-Royce announced they had nosedived into a £2.9bn loss in the year to 31 December 2018, as the engineering firm increased the charges for fixing the problematic Trent 1000 engines.

Underlying operating profit rose 71% to £633m for 2018 compared to £317m the previous year, they reported a rise in sales of £15.72bn up from £14.74bn.

Rolls-Royce earlier also announced last month they are scrapping the superjumbo, the Airbus A380 aircraft.

Warren East, chief executive said, “Underlying financial results are ahead of expectations, with good growth in profit and cash flow.

“Following the restructuring we announced in June last year we are starting to see the crucial behavioural changes needed to sustain our momentum,”