Rolls Royce feel the wrath of pension deficit

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Several civil aircraft manufacturers have began to see a slow down in their revenue thanks to the uncertainty and insecurity that surrounds the pension markets.

The current uncertainty has led to companies such as Rolls Royce loosing huge chunks of their original share value.

Rolls Royce feel the wrath of pension deficit

Rolls-Royce lost 12p to 321¾p amid worries that positive full-year results on Thursday would be ruined by a widened pension deficit and uncertainty over future demand for civil aircraft.

Dennis Jullens, a UBS analyst, reiterated “sell” advice with a 282p price target saying that although the aero-engine maker has moved much of its pension assets out of equities, there is a rump exposure that could drastically widen a pension funding gap.