LONDON (Reuters) - European equities retreated in early trading on Thursday following some disappointing company updates, with Rolls-Royce (RR.L) slumping about 20 percent after issuing another profit warning.
The pan-European FTSEurofirst 300 index .FTEU3 was down 0.7 percent at 1,484.74 points by 0811 GMT after closing 0.7 percent higher in the previous session.
Shares in Rolls-Royce (RR.L) were down 19.2 percent by 0808 GMT, the top decliner in the pan-European FTSEurofirst 300 index .FTEU3, after the British engine-maker downgraded its profit forecast for 2016, its fourth warning in just over a year, blaming sharply weaker demand for spares and services to existing aero-engines.
RWE (RWEG.DE) also fell more than 4 percent after warning it would only barely reach its full-year net profit target. Persistent problems at its British business have piled pressure on Chief Executive Peter Terium to come up with a convincing turnaround plan.
According to Thomson Reuters StarMine data, 84 percent of companies in the STOXX Europe 600 index have announced third-quarter results so far, of which 51 percent have met or beaten analysts’ forecasts. On the revenue front, only 47 percent companies have met or surpassed expectations.
Reporting by Atul Prakash; Editing by Sudip Kar-Gupta