Rolls Royce disappoints in its interim trading update
SHARES in engine-maker Rolls Royce fell yesterday after the company’s interim trading update disappointed investors.
The company said that “trading activity across the group’s businesses remains in line with expectations,” but it added that while revenues would grow in 2009, underlying profits would be flat compared to the previous year.
Evolution Securities repeated its “sell” rating on the stock.
“Guidance was unchanged but the statement was downbeat,” Evolution said, adding “the stock looks expensive and has outperformed peers such as EADS and Boeing, so it is likely to come off slightly”.
Chief executive sir John Rose said that global economic activity remained depressed. “There is no evidence yet of a sustained and general return to growth across the group’s markets,” he said.