Rolls makes progress despite dollar challenge

Rolls-Royce posted a 13% improvement in underlying profits for 2007 today, despite the “continuing challenges” of a weak US dollar and rising costs.

The engines giant, which has major UK plants at Bristol and Derby, said the figure of £800m (€1bn) reflected increased trading profits at all its businesses, including civil aerospace and marine.

It faced a further 8% deterioration in the US dollar rate in 2007 – at a cost of £92m (€123m) – as well as increased operating costs.

Chief executive John Rose described conditions as challenging but added the company’s order book increased by 76% to a record £45.9bn (€61.5bn), with the Asia and Middle East order book more than doubling to £20bn (€26.8bn) in 2007.