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Rolls-Royce says net profits soar

06:30 AEST Fri Jul 27 2012
A Rolls Royce Silver Cloud 1962 model (Getty)
A Rolls Royce Silver Cloud 1962 model (Getty)

Aircraft engine maker Rolls-Royce says first-half net profits have soared on rising revenues, a bumper order book and the sale of its stake in US-based International Aero Engines.

Earnings after taxation surged 24 per cent to STG1.19 billion ($NZ2.3 billion) in the six months to the end of June, compared with STG842 million ($NZ1.6) million in the same part of last year, Rolls-Royce said in a results statement.

Pre-tax profits meanwhile rallied to STG1.31 billion, from STG1.14 billion (2.2 billion) last time around.

The company's order book increased by 4.0 per cent to STG60.1 billion, while underlying revenues swelled five per cent to STG5.8 billion in the reporting period.

"Rolls-Royce has delivered solid growth in underlying revenue and underlying profit in the first half of the year," said Chief Executive John Rishton.

He added: "For the full year, we continue to expect good growth in underlying profit with cash flow around breakeven, excluding the positive impact of the Tognum acquisition and the sale of our equity stake in IAE."

During the first half, the group completed the sale of its 32.5 per cent holding in US-based joint venture International Aero Engines AG (IAE) to Pratt & Whitney - a division of United Technologies Corp - for $US1.5 billion.

IAE makes V2500 engines which power the Airbus A320 family of aircraft and the Boeing MD-90.

Last year, meanwhile, Rolls-Royce and German automaker Daimler clinched a joint takeover of Germany's industrial engines group Tognum.