Rolls-Royce posts record profits

Rolls-Royce says it expects to perform strongly this year after posting record profits in 2011.

The engine manufacturer, which has bases in Bristol and Derby, made a profit of £1.16 billion on the back of £11.3 billion in revenues.

The company's civil aerospace division performed strongly and is expected to again lead the drive for profits this year, with its defence, energy and marine sectors forecast to make modest gains.

Chief executive John Rishton said the company's order book, which stood at £62.2 billion at the end of 2011, augured well for 2012, adding: "Our order book gives us good visibility of future revenues and demonstrates the confidence our customers have in us."

The company's defence division was hit by a fall in Government business, with a 7% dip in orders to £6 billion.

Rolls-Royce last year acquired German engine maker Tognum in partnership with Mercedes-Benz owner Daimler in a £3 billion deal.

Copyright Press Association 2012