Rolls Royce disappoints in its interim trading update

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