Rolls-Royce record profits of £1.4bn; 24pc rise in full-year profit

Rolls-Royce reported a higher-than-expected increase in full-year profits

08:59 15 February 2013

Rolls-Royce’s underlying pre-tax profits for 2012 shows an increase over ten consecutive years. Thanks to the strong demand for more fuel-efficient engines from Airbus and Boeing, the engineering giant’s pre-tax profit reached £1.4billion; a 24per cent increase in full-year profit.

Revenue rose by 8per cent to £12.2billion.

Aside from announcing higher-than-expected profits, the company also appointed a new chairman who will succeed Sir Simon Robertson following the annual general meeting on May 2nd, 2013.

Invectec analyst Andrew Gollan was reportedly impressed with the figures. Also, he forecasted that the British aerospace company will increase its pre-tax profits this year.

And Rolls Royce chief executive John Rishton said that he expected “modest growth in underlying revenue and good growth in underlying profit” this year.

 

He added that the company will focus on making engines for civil and defence aerospace markets as well as turbines for marine and energy sectors.

Rolls-Royce’s share price increased by 3.3per cent in late afternoon trading to £10.17.