Outlook: Rolls Voice
THE OMINOUS silence from the engine room will finally be broken this morning when Rolls-Royce at last spells out the impact on its business of the terror attacks on America. The news, though grim for the workforce, will at least be a relief to shareholders who have been banging to no avail on Sir Ralph Robins' door for the past month demanding an answer.
Rolls says it takes time to assess the effects of such seismic events. But the market has taken the radio silence as a sign that things are worse than anyone dared believe and punished the the share price accordingly. Since 11 September Rolls has experienced an even steeper tailspin than British Airways.
The collapse of the airline market could scarcely have come at a worse time for Rolls. It had just recovered from last year's profits warning and was enjoying life back in the FTSE 100 when the attack on the twin towers meant that all bets were off. …