AERO engine maker Rolls-Royce today reported strong profits growth, despite a fall in contracts for large aircraft.

The company, which employs more than 1,000 people at its Barnoldswick factory, said its spread of businesses was wide enough to overcome the aircraft industry's shortage of demand.

Pre-tax profits for the six months to June 30 came in at £159 million - up 18 per cent from the £135 million posted at the same stage last year and broadly in line with expectations.

Total turnover was £2.104 billion against £1.990 billion last time.

Colin Green, director of operations, said today that Barnoldswick was playing a major role in Rolls-Royce's efforts to improve productivity and in work on projects including engines for Eurofighter and Joint Strike Fighter.

"The business needs to be world class in terms of both its products and its productivity," said Mr Green.

Pendle MP Gordon Prentice, recently met bosses of the firm to protest against job losses at the Barnoldswick site.

But Mr Green said improving productivity and cutting costs were essential against a backdrop of a fall in contracts for large aircraft and heavy expenditure needed in research and development for future work.

Rolls-Royce has hit double digit growth for the past two years but analysts were concerned about whether the group would be able to repeat the performance.

Engine deliveries have increased more than 40 per cent since 1996, but Boeing's decision last month to make GE its sole supplier of long-range 777X aircraft shook investors' confidence.

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