Rolls-Royce boosted Scottish engineering with news of strong growth in earnings that will bode well for the jobs of more than 2000 people in the central belt.
The engines giant said it was set fair for the future after meeting forecasts with an 8% rise in first-half profits, despite growing concern that the credit squeeze and growing fuel costs would put increasing pressure on airlines which are key customers.
"The youth, scale and geographical diversity of our civil aerospace installed base, along with our broad portfolio, will help mitigate the consequences of uncertain conditions in the airline industry," said chief executive Sir John Rose.
While the Confederation of British Industry highlighted growing unease among Scotland's manufacturers earlier this week, Rolls-Royce cheered sector watchers with news of good growth in orders in the six months. Helped by continuing strong demand for commercial airlines, the company had a record order book of £42.1bn on 30 June, up 17%.
Rolls-Royce has been the beneficiary of industry trends which should stand it in good stead.
While some airlines have been cutting fleet sizes, the planes withdrawn have mainly been narrow-bodied models featuring older engines.
The bulk of Rolls's civil aviation business involves supplying new engines for wide-bodied craft like the Airbus A350, which are growing in popularity.
"The relative youth and fuel efficiency of the Rolls-Royce installed base, which has an average age of eight years, make it less likely that Rolls-Royce-powered aircraft will be grounded," said the company.
With the number of Rolls-Royce engines up 75% over the last 10 years, demand for maintenance services is booming.
Underlying service revenues increased by 10% to £1.3bn in the first half.
These developments augur well for both of the com-pany's main aviation plants in Scotland.
Some 1300 skilled engineering staff at Inchinnan, Renfrewshire, make the giant compressor blades which are a key part of the Trent engines.
The 1000 workers at East Kilbride repair and recondition compressor blades and components. Most modern large engines are expected to have a lifespan of 20 years or more.
The marine defence arm, which employs 220 staff at Dalgety Bay in Fife, also had a good first half.
Underlying profit before taxation increased to £410m. Underlying sales rose 12% to £4.2bn.
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