Rolls-Royce expects little growth in 2010

ROLLS-ROYCE, the aircraft enginemaker, forecasted that its sales and profits for the year to come will be flat as the group said the business environment remained challenging.

A statement from Rolls-Royce said yesterday it expects underlying revenue, average net cash and underlying profits to be broadly similar to those achieved in 2009, despite a modest cash outflow in 2010.

Chief executive, Sir John Rose, said to shareholders yesterday: “While we are seeing signs of stabilisation and modest improvement in some parts of the global economy, to which our businesses are exposed, the overall environment remains challenging.”

Rose added that the disruption to the aviation industry caused by the Icelandic volcano had put pressure on some of the group’s customers.