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© Rolls-Royce plc 2007

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Annual report and accounts 2006

Consolidated income statement

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Consolidated income statement
For the year ended December 31, 2006
  Notes 2006
£m
2005
£m
Revenue 2, 3 7,156 6,603
Cost of sales   (5,527) (4,924)
Gross profit   1,629 1,679
Other operating income 4 57 60
Commercial and administrative costs   (671) (624)
Research and development costs   (370) (282)
Share of profit of joint ventures 11 47 46
Operating profit   692 879
Profit/(loss) on sale of businesses 32 1 (2)
Profit before financing income/(costs)   693 877
Financing income 5 1,196 472
Financing costs 5 (498) (872)
Net financing income/(costs)   698 (400)
Profit before taxation* 4 1,391 477
Taxation 6 (397) (130)
Profit for the year   994 347
Attributable to:      
Equity holders of the parent   998 350
Minority interests 26 (4) (3)
Profit for the year   994 347
Earnings per ordinary share:      
Basic 7 57.32p 20.11p
Diluted 7 55.14p 19.31p
Payments to shareholders in respect of the year   (172) (154)
* Underlying profit before taxation 2 705 593

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