A fall in profits at Rolls-Royce looks unlikely to directly affect the company’s aerospace plants at Barnoldswick.
As profits fell by 12 per cent, from £1.6billion to to £1.4bn, and the company continued a cull of senior managers, Rolls-Royce said: “A highlight for our Civil Aerospace business in challenging trading conditions is that we delivered more than 300 large engines and have also signed deals for almost 500 new ones.”
The company makes engines for Boeing’s 787 Dreamliners and Airbus A380 superjumbos, and the plants at
Barnoldswick specialise in wide-chord fan blades.
Confident of increasing its share of the civil aerospace market, the company highlighted a four per cent growth in its order book, after rolling out a new range of engines.
Although the civil aircraft business is healthy, Rolls suffered from falling demand in marine engines and corporate jets.
To cut costs by £150m-£200m a year, Rolls has been axing 50 of its top 200 senior managers and announced 3,600 redundancies throughout the group last year.
The final dividend payment to investors has been cut for the first time in nearly 25 years, by 50 per cent to 7.1p a share.
In the City, shares rose by 13 per cent to 602p at the news.
Chief executive Warren East said: “In the context of challenging trading conditions our overall performance for the year was in line with the expectations we set out in July 2015.
“It was a year of considerable change for Rolls-Royce: in our management, in some market conditions and in our near-term outlook. At the same time, there were some important constants: the underlying growth of our long-term markets, the quality of our mission-critical technology and services, and strength of customer demand for these, which are reflected in our growing order book.”