Rolls-Royce profit soars

August 23, 2001 Posted: 1138 GMT

LONDON (CNN) -- British aero-engine maker Rolls-Royce's first half profits more than quadrupled as sales expanded, the company aid on Thursday.

The company said it earned £85 million ($122 million) in the six months to June 30, up from £18 million a year earlier, as sales rose 12 percent to £3.15 billion.

The profit boost came as deliveries of commercial jet engines increased 40 percent and sales of spares for ageing engines also rose.

Revenues from engine servicing rose 20 percent, and made up two-fifths of  the company's total income.

Earnings per share came in at 5.35 pence, up from 5.04 pence in the same period last year as the company reported that its order book grew to a record of nearly £15 billion.

A further £1.9 billion of orders has been announced but not yet signed, Rolls-Royce said in a statement.

The profit reported for the first half of 2000 had been reduced by a charge of £120 million reflecting the costs of developing its industrial Trent engine.

Sir Ralph Robins, chairman of the world's second-largest maker of aircraft engines, said: "We continue to expect flat underlying earnings in 2001 and target increased underlying earnings in 2002.

He added: "We have secured significant market success with our growing range of products and innovative through-life services, and all of our businesses have good prospects."

The company said the Trent 900 engine had secured three out of the first four airline customers for Airbus's A380 "super-jumbo" aircraft.

Shares in Rolls-Royce were little changed at 216 pence in midday trading in London.

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