Strong engine deliveries buoy Rolls-Royce first half

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Rolls-Royce's civil aerospace division posted a 19% increase in underlying profit to £250 million ($408 million) for the first half of the year, and the company is expecting the full-year improvement to reach 20-25%.

The aero engine manufacturer achieved 462 engine deliveries in the first six months of the year, up from 416 in the same period in 2010.

Rolls-Royce increased its order book by 6% to £51 billion, comprising almost 5,000 engines. The company secured key agreements for Trent engines and support from carriers including Singapore Airlines, Asiana Airlines, Norwegian and Emirates.

Its 14% revenue increase for civil aerospace included a 22% rise in original equipment sales, while service revenues were up by 8%.

This was "tempered", said Rolls-Royce, by the settlement with Qantas over its Airbus A380 engine failure as well as additional research and launch expenditure.

Rolls-Royce expects its full year to reflect double-digit growth in engine deliveries across all sectors, and mid-single-digit growth in service revenues.