Rolls-Royce lifts profits despite dollar weakness

Engineering firm Rolls-Royce today beat profits forecasts despite rising raw materials costs and a weaker US dollar.

The company posted underlying pre-tax profits of £380m (€567m) in the first half of 2007, up 17% on 2006 and ahead of consensus forecasts of £370m (€552m).

Chief executive Sir John Rose said the company had made “strong progress” despite a further 7% decline in the dollar costing £40 million and higher raw material prices raising unit costs.

Rolls-Royce, which has bases at Derby and Bristol, said underlying sales were ahead 10% to £3.75bn (€5.6bn) over the period.