Rolls-Royce reported strong first-half results, as its £57.5b order book helped it ride out the slowdown in commercial aeroplane sales.

The engine manufacturer reported another £2b increase in its order book during the first half, and a 9 percent rise in profit to £445m, excluding gains on currency hedges.  
The company, which on Monday announced a £300m investment in four new UK sites backed by Government aid, expects profits in its civil aerospace business to fall this year because of effects on the industry caused by the recession. The division still won £6.3b of engine orders in the first half.
“The business has become increasingly well balanced across a wide range of sectors and geographies,” said Sir John Rose, chief executive. Some 90 percent of Rolls' business is outside the UK, and the company also makes 50pc of its money through servicing engines. That gives it a stable flow of work and keeps its factories busy even when new orders are slow.
Revenue from its energy division rose 38 percent to £447m in the first half, helped by “robust” demand from the oil and gas industry. Countries such as Brazil are still investing to develop their natural resources, Sir John said.
Rolls-Royce expects to meet its forecast for revenue to grow and profits to be unchanged in 2009. In a further sign of confidence, the company raised its first-half dividend by 5 percent to 6p a share, payable on January 5.
(Source: Telegraph.co.uk)