(Corrects paragraph 4 to show Rolls Royce sold its industrial
gas turbine unit to Siemens, not its overall gas turbine unit)
LONDON, June 19 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
"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)