Rolls-Royce Profit Rises on Sales to Planemakers, Repair Work
Rolls-Royce Group Plc (RR/), the world’s second-largest aircraft-engine maker, said first-half profit rose as civilian plane manufacturers bought more powering systems and the company provided more repairs.
Adjusted net income, excluding revaluation of currency hedging contracts, increased to 442 million pounds ($722 million) from 349 million pounds a year earlier, the London- based company said in a statement today. Analysts had predicted profit of 375 million pounds. The company’s first-half dividend rose 8 percent to 6.9 pence a share.
Demand for engines has been sustained as Airbus SAS and Boeing Co. (BA), the world’s two largest makers of commercial aircraft, work through order backlogs. Chicago-based Boeing is scheduled in September to deliver its first 787 Dreamliner model, a plane powered by Rolls-Royce’s Trent 1000 engine. Repair work has increased as airlines restored planes to service following an increase in traffic.
“Performance in the first half of the year was strong with our order book and underlying profit showing solid growth, enabling an increased payment to shareholders,” Chief Executive Officer John Rishton, who took over this year, said in the statement. “This demonstrates the resilience of our strategy that is based on a diverse portfolio and access to global markets.”
Rolls-Royce gained as much as 12.5 pence, or 2 percent, to 654 pence, and traded at 642 pence as of 8:21 a.m. in London.
Rolls-Royce’s Trent 900 model is used on Airbus’s double- decker A380 plane and an engine dubbed the Trent XWB will be the exclusive powerplant for Airbus’s planned A350, which is due to enter service in 2013. The company aims to more than double engine production by the middle of the decade.
A Trent 900 exploded in November on a Qantas Airlines Ltd. A380, leading to an emergency landing of the plane in Singapore. Rolls-Royce said in June after a settlement with Qantas over A380 fleet disruptions that its total costs from the incident amounted to 56 million pounds in 2010.
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