Rolls-Royce says long-term prospects are strong

Aero-engines firm Rolls-Royce says its long-term prospects remain strong.

It acknowledges that the aftermath of the September 11 terror attacks will have a negative impact on its civil aviation operations in the short term.

In a statement to its annual meeting, the firm said that its short-term outlook was consistent with guidance given in October and again in March.

Rolls-Royce said profitability in 2002 would be affected by the downturn in civil aerospace.

It also said average net debt was expected to be at a level similar to that in 2000.

Chairman Sir Ralph Robins told shareholders: "We operate in growth markets, in which we have established strong positions.

"We therefore believe that the current adverse market conditions in civil aerospace will not materially affect the long-term value of the business."

Chief executive John Rose said: "Whilst the terrorist attacks of September 11 have affected our civil aerospace business, our long-term prospects remain strong.

"We have a solid order book, with 38 of the world's top 50 airlines among our customers, compared to less than 10 in 1990."