Rolls-Royce on track to meet targets

11th Nov 2011 07:19

Power systems giant Rolls-Royce has assured investors that trading since the end of the first half has been in line with the guidance given in July - double digit growth in engine deliveries in all sectors and 20-25% growth in group profit. The firm said it has seen "encouraging" order flow from a broad range of global customers, and continues to expect good growth in underlying profit and a modest cash inflow (excluding the impact of acquisitions)."Since the half year we have achieved some important milestones and continued to lay firm foundations for future growth," said chief executive John Rishton.The balance sheet is said to be "robust" due to payments in excess of £1.4bn in relation to the acquisition of Tognum and the R Brookes Associates purchase in the nuclear sector. Rolls-Royce also said that the balance sheet will be strengthened when the restructuring of its involvement in International Aero Engines (IAE) is completed.The group announced last month that it would dispose of its interest in IAE - a joint venture between Pratt & Whitney, MTU Aero Engines (MTU) and Japanese Aero Engine Corporation (JAEC) - to Pratt & Whitney for $1.5bn, in addition to further payments for every hour IAE engines are flown over the next 15 years. During the period since 1 July, the firm has celebrated the entry into service of the first Boeing 787 Dreamliner.BC