Rolls-Royce profits and revenues rise

Rolls-Royce logo on engine Rolls-Royce is the world's second largest aero engine maker after General Electric

British aerospace company Rolls-Royce has reported a higher-than-expected rise in full-year profits.

Underlying pre-tax profit rose 24% to £1.4bn ($2.18bn; 1.63bn euros), led by a strong performance in its civil aerospace division.

The world's second largest aero engine maker saw revenues grow 8% to £12.2bn.

The company also appointed a new chairman, Ian Davis, who will succeed Sir Simon Robertson following the annual general meeting on 2 May 2013.

Investec analyst Andrew Gollan said: "Rolls has delivered solid results, slightly ahead of our estimates and guided to another year of good growth in profits."

It is maintaining its forecast that pre-tax profits will grow 20% in 2013.

Rolls-Royce's order book rose 4% to £60.1bn thanks to strong demand for its Trent aircraft engines.

The newly-certificated Trent XWB engine will power the Airbus A350, while its Trent 1000-TEN will power Boeing's 787 Dreamliner from 2016.

Looking ahead, chief executive John Rishton said he expected "modest growth in underlying revenue and good growth in underlying profit" in 2013.

He said the company would concentrate on making engines for the civil and defence aerospace markets as well as turbines for the marine and energy sectors.

But Rolls-Royce is withdrawing from tidal power generation, following the sale of its business to Alstom in January 2013.

The company also sold a 51% stake in its fuel cell business to LG.

Rolls-Royce's share price rose 3.3% in late afternoon trading to £10.17.

More on This Story

The BBC is not responsible for the content of external Internet sites

Features & Analysis

  • Man holding lipWitch hunt

    The country where a blasphemy charge is a death sentence


  • Espresso cupNews quiz

    Which city serves the strongest cup of coffee?


  • Irvine WelshDeaf ears

    Five famous Scots who can't vote in the Scottish referendum


  • Electric chairReturn of 'the chair'

    Five people talk about their roles in Tennessee's execution debate


Elsewhere on the BBC

  • Canada.Hidden rail trip

    Canada's tiny, two-car shuttle is a train lover's dream with scenic views

Programmes

  • Leader of Hamas Khaled MeshaalHARDtalk Watch

    BBC exclusive: Hamas leader on the eagerness to end bloodshed in Gaza

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.