Record Orders Boost Profits For Rolls-Royce

UK engine maker Rolls-Royce has posted a 21% rise in pre-tax profits, driven by record orders.

The aerospace engineering company made over £1.16bn in 2011 and said it expects to deliver further growth in 2012.

Its order book grew to a record £62.2bn, up 5%, helped by significant orders from airlines including Singapore and Emirates.

It is the first time Rolls-Royce, which also builds propulsion systems for British navy nuclear submarines, has reported an annual profit in excess of £1bn.

The 2011 earnings figure compared with profit after tax of £539m in 2010.

The rise was helped by the acquisition of German engine maker Tognum and the £950m sale of its stake in International Aero Engines.

New Rolls-Royce chief executive John Rishton, who succeeded Sir John Rose in April 2011, welcomed the good start to his tenure.

Mr Rishton said: "Rolls-Royce performed well in 2011, and at the year-end had a record order book, record underlying revenue and record underlying profit."

He added: "For 2012 we expect good growth in both underlying revenue and underlying profit with cash flow around break-even as we continue to invest in future growth."

In 2010, Rolls-Royce took a hit of £56m because of safety issues with the Trent 900 engine used to power the Airbus A380 superjumbo.