British engine maker Rolls-Royce posted a 54 per cent rise in mid-year underlying pretax profit today amid higher demand for aircraft engines.
Rolls reported a pretax profit of £260 million (€376 million), versus £229 million (€331 million) expected on average by analysts polled by Reuters for the six months to June 30th.
Rolls said its interim payment to shareholders would rise by 5 per cent.
"We remain on target to generate continued growth in profits and reduction of average net debt in 2005," Chief Executive Sir John Rose said in a statement to the London stock exchange.
Sales rose to £3.18 billion (€4.6 billion), up by 14 per cent on an underlying basis, which excludes unrealised gains on fair value and other adjustments.
Higher engine deliveries and growth in service revenues powered the increase, the company said.
The world's second-largest maker of aircraft engines also builds ship engines and equipment used in the energy industry.