Rolls-Royce hopeful for improved full-year

Cost controls have also boosted its outlook as the UK company reported a four per cent rise in underlying profits to 465m for the six months to June 30.

It now expects the full-year figure to be "modestly higher" than 2009, compared with its forecast in March for a flat performance.

Chief executive Sir John Rose said Rolls had a delivered a robust performance despite the continuing uncertainty in the global economy.

While activity in many markets remains subdued, Rolls said it secured orders worth 5.9bn in the first half, increasing its order book to a record 58.4bn.

A further 1.1bn of orders were received at the Farnborough air show earlier this month.

The company's marine business, which provides power systems in the offshore oil and gas, specialist vessel and naval market, was the outstanding performer in the half after a 55 per cent rise in underlying profits to 171m. Rolls reported a recovery in marine demand, with 1bn of new orders booked in the half-year period.

The division has more than 2,000 customers with equipment installed on more than 30,000 vessels worldwide.

Rolls said conditions in civil aerospace remained subdued, but it its current order book of more than 5,100 engines was equivalent to more than 35 per cent of today's installed fleet, delivered over a quarter century.