Rolls-Royce CE's new confidence quells concerns over 787 engine

Rolls-Royce is riding a wave of optimism as the benefits of job cuts and management changes overshadow investor concerns about glitches with engines that power Boeing’s 787 jet. The stock rose as much as 7.3% Thursday as CE Warren East’s declared his “growing confidence” in an improved earnings outlook, even as the hit from the Trent 1000 turbine that powers the jet is set to reach 1.3 US$1.7b. East has eliminated thousands of jobs, reorganised Rolls to make it more responsive to demand and struck deals to sell fuel-injection and ship-design arms. The company outlined plans in June to cut another 4,600 management and back-office posts to help blunt the impact of the 787 problems, which have forced airlines to ground planes while their engines receive emergency repairs. <br/>