Rolls-Royce Holdings PLC Rises On Good Progress

In its half-year results, issued this morning, Rolls-Royce (LSE: RR) has reported underlying pre-tax profit up 34%, at £840m, on underlying revenue that had increased 27%, to £7,320m.  The order book now stands at £69bn, up 15% on 2012.

Underlying earnings-per-share rose 27%, to 33.33p, and the company will be increasing its interim dividend by 13%, to 8.6p per share. Rolls-Royce’s forward yield now stands at close to 2%.

The results were boosted by the contribution from Tognum, the German power and propulsion company that Rolls-Royce jointly acquired with Daimler in  2011, which is fully consolidated in the Group’s results for the first time.

Commenting on the results, John Rishton, Rolls-Royce’s Chief Executive, said:

 “Results in the first half show good progress against some of our priorities, as well as highlighting the need for further action in others.

“While underlying profits were up 34%, primarily reflecting volume and the benefit from the IAE restructuring, it is clear we have a lot more to do on cost (and cash). Fortunately we have significant opportunities to improve both, but this will take time and firm resolve to deliver.

“We maintain our full year guidance for the Group.”

Rolls-Royce’s share price currently stands at 1,223p, up nearly 4% this morning, and almost 50% on this time last year.

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> Jon doesn’t owns shares in Rolls-Royce.