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Airline slump clips Rolls-Royce's wings
Robert Lea12.02.09
The biggest airline industry slump in history is set to hit profits at Rolls-Royce.
The British manufacturer admitted today its aero-engine making business will see profits fall in the current year from the £566 million reported in 2008.
It will be hit by the fewer aircraft being built by the planemakers Airbus and Boeing, and a fall in after-sales maintenance work as existing planes fly less in the recession.
But chief executive Sir John Rose insisted the fall in revenues from its aero-engines business will be offset by growth in its higher margin defence aerospace operations and its fast-growing marine business making vast turbines for naval, merchant and commercial vessels.
"Our current view is that 2009 underlying profits will remain broadly similar to those achieved in 2008," he said.
Underlying pre-tax profits for 2008 came in 10% higher at £880 million. The full year dividend is up 10% to 14.3p.
