Rolls-Royce on track to meet targets

Power systems giant Rolls-Royce has assured that trading since the end of the first half has been in line with the guidance given in July - double digit growth in engine deliveries in all sectors and 20-25% growth in group profit.

The firm said it has seen "encouraging" order flow from a broad range of global customers, and continues to expect good growth in underlying profit and a modest cash inflow (excluding the impact of acquisitions).

"Since the half year we have achieved some important milestones and continued to lay firm foundations for future growth," said chief executive John Rishton.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The balance sheet is said to be "robust" due to payments in excess of £1.4bn in relation to the acquisition of Tognum and the R Brookes Associates purchase in the nuclear sector. Rolls-Royce said that the balance sheet will also be strengthened when the restructuring of its involvement in International Aero Engines (IAE) is completed.

The group announced last month that it would dispose of its interest in IAE - a joint venture between Pratt & Whitney, MTU Aero Engines (MTU) and Japanese Aero Engine Corporation (JAEC) - to Pratt & Whitney for $1.5bn, in addition to further payments for every hour IAE engines are flown over the next 15 years.

During the period since 1 July, the firm has celebrate the entry into service of the first Boeing 787 Dreamliner.

BC