Engine orders see Rolls-Royce thrive despite the downturn
ROLLS-ROYCE yesterday said its underlying first-half pre-tax profit was up nine per cent for the first half of 2009 on the back of engine plane orders, which peaked before the downturn.
The company, which makes engines and turbines for passenger planes, fighter jets, ships and power stations, is on track to meet its full-year goals, it added.
Underlying pretax profit rose to £445m from £410m a year ago.
Rolls-Royce, which split from the luxury car maker of the same name in 1971, said the global trading environment remained very difficult and that it expected recovery to be slow.
“It is difficult to see green shoots in the economy but the decline has slowed in some areas,” chief executive Sir John Rose said.
But the company repeated its forecast for growth in underlying revenues, broadly similar underlying profits and an increase in the average net cash balance for the full year.
It has been hit by production delays to two aircraft, the Airbus A380 and the Boeing 787, crimping revenues from engine deliveries and prompting a build-up in inventory.
The company said production delays “add to the uncertainty surrounding future engine volumes”.