Rolls-Royce shares soar nearly ten per cent after the engine maker beat first-half profit forecasts on Tuesday. David Pollard reports.
Rolls-Royce shares go full throttle. The engine maker beating profit forecasts by a nearly fifty per cent margin - on pretax profits at just under 290 million pounds. Boss Warren East is rebuilding Rolls after a record annual loss last year, hurt by a bribery fine, a weaker British pound and falling revenue from older engine programmes. 'We've made good progress but there's still a lot to do,' he said. And some analysts agree. (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYSTS, OANDA, SAYING: Today's results were extremely positive. But again their company does still have many many challenges to face. I think the the large write-down last year continues to negatively impact. The entire restructuring program is extremely expensive and very ambitious. It's doubling production of its large civil aircraft engines - aiming to capture half of the market by 2020. And says it has an order book of more than 2,700. London trading saw a gain of nearly ten per cent for investors - its shares hitting a two-year high.