Rolls-Royce reports jump in pre-tax profits as orders increase

25th Jul 2013 07:03

Rolls-Royce Holdings posted a 34 per cent jump in pre-tax profits to 840m pounds for the first half as the engine maker secured more orders. Underlying revenue was up 27% to £7.3bn, including a £1.1bn contribution from Tognum which was incorporated into the firm's results for the first time since it acquired the German firm with Dailmer in 2011. The order book rose 15% to £69.2bn, including £1.7bn worth of orders from Tognum, holds interests in a number of engine manufacturing brands and facilities.Underlying earnings per shares was up 27% to 33.33p as the group achieved significant militants including the first flight of the Trent XWB-powered Airbus 350, the certification of the A400M military transport aircraft powered by the TP400 engine and delivery of the first Environship, a low emission ship.The company began building the first Trent-1000-TEN, its engine for the Boeing 787-10 programme. Its entry into service is planned for 2016. However, product launch costs and restructuring charges partially offset the firm's results.Reported profit before financing of £884m has fallen by 30% mainly due to the International Aero Engines (IAE) disposal profit of £700m in 2012."Results in the first half show good progress against some of our priorities, as well as highlighting the need for further action in others," said Chief Executive, John Rishton."In terms of delivery on our promises, we were delighted to take management control of Tognum after nearly two years; the whole organisation was excited by the first flight of the Airbus A350 powered by our Trent XWB engines and we made good progress on our customer initiatives."Net cash at the period end was £921m , down from £1.3bn at the end of 2012. Cash outflow of £461m, prior to Tognum, acquisitions, disposals and foreign exchange, reflects continued investment to support growth coupled with a £0.8bn increase in net working capital.Shareholders received 8.6p per share, up 13% year-on-year. Excluding Tognum, Rolls-Royce expects modest growth in underlying revenue and good growth in underlying profit, with cash flow around breakeven as the firm continue to invest for future growth. RD