By Jonathan Davies

Rolls-Royce has issued a third profit warning in a little over a year.

The manufacturing giant issued a warning in February, saying annual profits were likely to be in the region of £1.4 - 1.5 billion. In its initial forecast for the financial year, Rolls-Royce said profits were likely to be flat or 3% lower.

At the time, it blamed weaker oil prices for "increased uncertainty for many of our markets and customers" and a fall in demand.

Now, Rolls-Royce says profits are likely to be £1.325bn and £1.247bn.

"I am clearly disappointed by today's announcement and the impact this will have on our investors and employees," said Rolls-Royce chief executive Warren East.

"Notwithstanding the market developments, it is our responsibility to build a business that is sustainable and resilient, no matter what is thrown at us, and this will be my fundamental priority for the next few years."

Rolls-Royce also said that it would suspend its £1bn share buyback programme, which was around half completed.