Rolls-Royce first-half profit slumps, guidance unchanged

“I’m delighted that they are announcing this £340 million contract with Vietnam Airlines supporting UK manufacturing in Derby, Rolls-Royce’s manufacturing hub for Trent XWB engines”.

Aircraft engine manufacturer Rolls-Royce has posted an 32pc drop in half-year profits, down to £439m, compared with £646m in the same period past year.

Revenues at the firm, which employs around 14,000 people in Derby, fell slightly, dropping 3% to £6.3 billion.

As part of a controversial 2,600 job cull at a time of a record £76.5 billion order book, Rolls-Royce today confirmed it is closing its facilities at Ansty in Coventry and at East Kilbride, south of Glasgow.

But lower demand for Airbus A330ceo aircraft, which is powered by the Trent 700 engine, has presented challenges for Rolls-Royce.

It came as the titan’s marine division continued weakness and their Aerospace division was forecast to see weaker conditions in some markets beginning in 2016.

The results will look disappointing to a company that has had a hard time of late: earlier this month, the company issued another profit warning under new chief executive Warren East, that sent shares down.

Despite the disappointment of our recent update, our second half outlook remains positive and full-year guidance for revenue, profit and cash issued on July 6 remains unchanged.

“Our investment in Inchinnan demonstrates our commitment to innovative technology and world-class facilities which will improve performance and drive profitable growth for our business”, Mosley said.