Rolls-Royce: Cruising Nicely
LONDON -- Rolls-Royce Holdings (ISE: RR.L) shares were trading up 5% as the market opened this morning, off the back of its half-year results published today, which valued the company at 15.53 billion pounds.
The world famous engineer, best known for its commercial jet engines, reported that it had made underlying profits (before tax) of 637 million pounds, up some 7% on 2011's half-year results.
Underlying revenue was also up 5% at 5.8 billion pounds, while the order book went up 4% to 60.1 billion pounds. The company also announced the completion of the disposal of its 32.5% shareholding in International Aero Engines AG.
Chief executive John Rishton said:
Rolls-Royce has delivered solid growth in underlying revenue and underlying profit in the first half of the year.
For the full year, we continue to expect good growth in underlying profit with cash flow around breakeven, excluding the positive impact of the Tognum acquisition and the sale of our equity stake in IAE.
The first-half dividend payment was also confirmed, rewarding shareholders with 7.6 pence per share -- a 10% increase on the previous year.
Today's half-year results from Rolls-Royce underline how great businesses can become wonderful investments for ordinary investors. Indeed, despite the uncertain economic outlook, Rolls' shares have been on something of a tear recently -- trading up some 45% since September 2011.
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The article Rolls-Royce: Cruising Nicely originally appeared on Fool.com.Andy does not own shares in Rolls-Royce. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.