Rolls-Royce profits up 21%

Jet engine maker Rolls-Royce said today profits lifted 21% last year on the back of a better-than-expected recovery in the civil aerospace market.

London-based Rolls said underlying pre-tax profits before one-off items in the year to December 31 came in at £345m (€501m) against £285m (€414m) last time.

The group said sales in 2004 rose 5% to £5.9bn (€8.6bn) due in large part to the faster civil aerospace revival and 14% growth in engine servicing revenues to £3.2bn (€4.6bn).

Chief executive John Rose said Rolls was entering 2005 with a record order book of £18.9bn (€27.4bn) against £17.4bn (€25.3bn) beforehand.

“These factors, supported by our investment in operational efficiency, underpin our expectation of continued growth in profits and reduction of average net debt,” he said.