Rolls-Royce Achieves Profit but Aero Slowdown

Rolls-Royce, which makes engines and turbines for passenger planes, fighter jets, ships and power stations, posted a 4 percent rise in full-year profit. There was growth in its defense and marine units with a counterbalance of slowdown in civil aerospace resulting in no recovery in aviation markets.

Fundamental profit before tax rose 4% to £915m in 2009 from £880m in 2008. Regardless of delays in the Airbus A380, the Boeing 787 and the Airbus A400M military transport aircraft programs revenue rose to £10,414m from £9,082m. Average net cash over the reporting period was £635m which is a considerable development on the 2008 figure of £375m.

The world's second-largest maker of aircraft engines mentioned that it predicted civil aerospace markets to remain difficult in the short-term as the unit's profit fell by 13 percent in 2009 and total engine fell to 844 from 987 in 2008. "In 2010 we expect underlying revenues and profits to be broadly similar to those achieved in 2009", said Chief Executive Sir John Rose.

The company has claimed that there were no key modifications in pension cash funding requirements. The final dividend is 5% higher at 9p which makes the full year dividend 15p.