Interim management statement
Tuesday, 3 November 2009
Rolls-Royce Group plc, the global power systems company, is today issuing its Interim Management Statement for the period 1 July to 2 November 2009.
Trading activity across the Group’s businesses remains in line with expectations. The Board continues to expect underlying revenues to grow in 2009, with underlying profits remaining broadly similar to those achieved in 2008. In line with previous guidance, the Board also expects a modest cash outflow in 2009 and an increase in the average net cash balance.
Sir John Rose, Chief Executive, said:
“Global economic activity remains depressed. Whilst some emerging economies have shown signs of recovery, there is no evidence yet of a sustained and general return to growth across the Group’s markets.
“Our access to a wide range of global markets, the strength of our balance sheet and the early action we have taken to reduce costs and improve efficiency give the Group resilience to manage through the current uncertain environment.
“We have strong positions in markets with long-term growth potential and we have a record order book, which has been increasing despite some minor cancellations. We continue to invest despite this general economic downturn to support the growing demand for our products and services and we have the financial strength to take advantage of opportunities as they arise”.
In July, the Group announced that it would be proceeding with a number of new operational and research facilities in the UK, Singapore and the USA. These investments will increase capacity and geographic spread and improve productivity.
The Group will report its preliminary results for the 12 month period ending 31 December 2009 on 11 February 2010.