Rolls-Royce chief battles with turnaround as engine woes persist

Rolls-Royce recently told several long-time suppliers that it was cutting expected orders at short notice. The news stunned the companies involved. Plants that had been set aside for Rolls-Royce would now lie idle. While the orders had not been contractually agreed, such a drastic reduction in the so-called schedule — used by suppliers to plan capacity — was unusual and potentially “devastating for the supply chain”, according to 2 industry executives familiar with the situation. “It was catastrophic,” said one. “The supply chain does not trust them anymore.” Over the past 2 years, the aero-engine maker has struggled to contain spiralling costs from durability problems on the Trent 1000 that powers Boeing’s popular 787 Dreamliner. Rating agencies have downgraded the company to just above junk. <br/>