Rolls-Royce profits soar on back of airline demand

Soaring demand for new airliners helped Rolls-Royce achieve record profits last year. The aerospace engines group unveiled advance orders of £12.6bn also a record as it revealed an 18% rise in profits to £325m. The company delivered nearly 900 engines for civil aircraft makers Boeing and Airbus, with more than 100 contracts worth more than […]

Soaring demand for new airliners helped Rolls-Royce achieve record profits last year.

The aerospace engines group unveiled advance orders of £12.6bn also a record as it revealed an 18% rise in profits to £325m.

The company delivered nearly 900 engines for civil aircraft makers Boeing and Airbus, with more than 100 contracts worth more than £3bn for after-market work.

About £10.4bn of orders have been signed, compared with £8bn a year ago. Another £2.2bn has been agreed but not signed, said chief executive John Rose.

One in three airliners ordered last year are powered by Rolls-Royce engines.

Rose said he expected deliveries to go on rising in 1999 but admitted that last year looks certain to have seen the peak of the boom in the civil aviation market.

‘There will clearly be a fall in orders,’ he said, adding that he expects significant work for repairing and overhauling engines.

‘We have secured about 55% of the higher-value spares after-market, which gives us a very strong platform to sustain earnings growth,’ he said.