Rolls-Royce update reassures

Engines giant Rolls-Royce reassured investors today by revealing it had secured £5bn (€6.32bn) of new orders since the end of June.

While unwilling to forecast the likely effect of the economic downturn on its markets, Rolls described trading activity at its four businesses as good and said that current trading remained in line with City expectations.

Shares rose almost 10% after the brief update, which Numis Securities described as reassuring. The broker left its full-year profits forecast of £801m (€1,012m) untouched, a figure representing 12% growth on a year earlier.

Rolls, which has major plants at Bristol and Derby, said earlier this year that a buoyant oil and gas industry had boosted its marine and energy businesses, with defence work also strong.

And Numis said an order backlog of close to £60bn (€75bn) gave the company “very high visibility”.

Analyst Andrew Gollan added: “We see limited cancellation risk as the airline sector continues to replace old inefficient fleets with new aircraft.”

More in this Section

'In a nutshell': Credit Unions impacted by Covid-19 call for state support as loan demand drys up'In a nutshell': Credit Unions impacted by Covid-19 call for state support as loan demand drys up

Renault announces 15,000 job cuts worldwideRenault announces 15,000 job cuts worldwide

Inform Nutrition gears up to drive global salesInform Nutrition gears up to drive global sales

Office Master: Tips for working from homeOffice Master: Tips for working from home


One word: iconic.90s celebrity power couples who were serious style goals back in the day

Alanis Morissette, celebrating 25 years since Jagged Litle Pill, talks to Ken Lexington on self-medication, love addiction, anxiety, depression and anger as an important lifeforceFor Alanis Morrisette, anger is an energy

Another week, another fiendishly fun test of your arts and showbiz knowledge from Irish Examiner Arts Editor Des O'DriscollScene & Heard: Fun culture quiz

The story of how the Cork-based executive head chef faced her “demons” and turned around her life just before her 30th birthday.This is me: Trisha Lewis transforms her body and mindset

More From The Irish Examiner