Rolls Royce: Business is 'resilient' after engine failure

Rolls Royce has seen around $1.5bn wiped off its stock market value since the dramatic failure of one of its its engines aboard a Qantas A380 last week.

Investors have been waiting for answers, and the company has released a trading statement saying a "specific element" failed in the Trent 900 engine causing an oil fire which led to the incident.

As to the financial impact, the company has lowered its profit forecast but says the business is "resilient" with other areas of the company making up for the problems with the Trent engine.

However, as Theo Leggett reports, the damage to the firm's reputation may be a longer term worry.