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November 9, 2012 10:34 am
The chief operating officer of Rolls-Royce is to retire after more than three decades at the FTSE 100 engine maker, to be replaced by his deputy.
Mike Terrett, who joined the company as a graduate apprentice in Derby in 1978, will step down from the role at the end of the year.
His responsibilities will be assumed by Alain Michaelis, who moves across from his current role as president of the group’s gas turbine supply chain operation.
Mr Michaelis who joined the company in 2008, will move into the newly-created role of operations director – a position that, unlike the chief operating officer job, does not include a seat on the Rolls-Royce board.
The news came as the world’s second-largest maker of commercial aircraft engines reiterated its full-year revenue guidance, in spite of a downgrade to expectations at its marine division.
Rolls-Royce on Friday said that “due to the phasing of deliveries, underlying revenue is now expected to be broadly flat” at the marine division, down from previous forecasts of a “modest increase”.
Rolls-Royce said that trading since its interim results in July had been solid, and confirmed expectations that it would report “good growth in underlying revenue and profit, with cash flow around break-even” in the 12 months to December 31.
Analysts’ consensus forecasts are for underlying pre-tax profit of about £1.4bn, excluding the impact of the sale of its stake in IAE, the engine manufacturer, and the acquisition of Tognum, the German engine maker.
The group has been increasingly focused on catering to the demand for fuel-efficient civil aircraft engines, which has helped Rolls-Royce offset tougher conditions in the defence and marine sectors.
Since its interim results, Rolls-Royce has agreed a $2.6bn contract with Singapore Airlines to supply engines for 20 Airbus A350s and five Airbus A380s.
On the defence side, Rolls-Royce recently signed a deal with the US Navy to power its future fleet of Ship to Shore Connector hovercraft.
Rolls-Royce shares, up almost one quarter over the past year, on Friday were flat at 861p, valuing the group’s equity at £16bn.
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