(Corrects paragraph 4 to show Rolls Royce sold its industrial gas turbine unit to Siemens, not its overall gas turbine unit)
LONDON, June 19 (Reuters) - Britain's Rolls-Royce said it planned to return 1 billion pounds ($1.7 billion) to investors through a share buyback, passing on the proceeds from the sale of its energy turbine business which was announced in May.
"As no material acquisitions are planned, and reflecting the strength of our balance sheet, we will return the proceeds of the Energy sale to our shareholders," Chief Executive John Rishton said in a statement on Thursday.
The company also confirmed it was on track to meet guidance for this year and next.
Rolls-Royce, whose primary business is making engines for aircraft, in May agreed to sell its industrial gas turbine unit to German conglomerate Siemens AG for 785 million pounds. The deal is expected to complete by the end of 2014. ($1 = 0.5904 British Pounds) (Reporting by Sarah Young; editing by James Davey)