We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedChange Management

Fuel-efficient engines lift Rolls-Royce profits


The company posted a 7 percent rise in profits for the first six months

Article comments

Rolls-Royce reported a better-than-expected rise in half-yearly profit thanks to increased production and new fuel-efficient planes, the company said on Thursday.

The company posted a 7 percent rise in profits for the first six months thanks to demand from Airbus and Boeing who in turn are responding to increased demand from airlines for new fuel-efficient planes.

The world's second-largest maker of aircraft engines behind US group General Electric reported underlying pre-tax profit of £637 million for the six months to the end of June on revenues 5 percent higher at £5.8 billion.

Europe's Airbus and US rival Boeing are ramping up output and are targeting more than 1,100 deliveries this year.

The company raised the interim dividend by 10 percent to 7.6 pence per share and said it expected to deliver further growth in 2012 in spite of global economic uncertainty.

"For the full year, we continue to expect good growth in underlying profit with cash flow around breakeven," chief executive John Rishton told reporters.

"The volatility of the economic environment - whether it's in Europe, a slowdown in China or the US - does have an impact and none of us are immune to this. But the diverse range of products we produce and the geographic spread we have helps protect us."

The group sells aero, defence, marine and energy products to businesses and governments in more than 100 countries.

Shares in Rolls-Royce, which have risen 14 percent in 2012, were 4.8 percent up at 869.50 pence by 0824 GMT, valuing the company at around £16 billion.

Rolls, which has more than 5,000 engines worth some £50 billion on order, said revenues at its main civil aerospace unit rose 17 percent in the last six months. Around 60 percent of the unit's revenues come from aftermarket services.

Share:

Comments

Fuel-efficient engines lift Rolls-Royce profits
Change Management

How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale valuemore ..


European IPO markets reaches pre-recession levels

At least 15 IPOs with over €250m proceeds are planned before the end of the summer, PwC saysmore ..

BG Group relocates trading HQ to Singapore

Oil and gas company says it wants to get closer to “high growth” LNG marketsmore ..

Chicago Sun-Times first major US paper to accept bitcoins

Backed by Coinbase, the move is part of a digital-first strategymore ..

Will the new tax breaks help Britain’s VFX and film industries?

Alex Hope, MD of Double Negative, explains what the autumn statement really means for UK VFXmore ..

How to improve your annual report

Regulators recognise the value of storytellingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *