Rolls-Royce has increased its sales to £11.1billion last year - but an engine blow-out on a super-jumbo cost the firm £56million.

The aerospace giant, which employs 1,000 in East Lancashire, yesterday reported its full-year results, revealing for the first time the impact of the Trent 900 failure in November.

The incident, which saw a Rolls-Royce-powered Qantas Airbus A380 make an emergency landing, made a dent in profits and resulted in a hefty one-off payment.

Although sales increased in 2010 to £11.1billion from £10.4billion a year earlier, pre-tax profits tumbled from £3billion to £702million, also owing to increased research and development costs and other charges.

However, underlying profits – which reflect the backbone of the business and strip out one-off incidents – rose from £915million to £955million.

Despite the blow-out, civil aerospace, which makes up a major part of work at Rolls Royce’s Barnoldswick sites, performed well, with sales up and the order book increasing from £47billion to £48.5billion.

But the company has expressed concern over the F136 engine project, which is behind a planned £30million extension at Barnoldswick, creating 100 new jobs.

Rolls said funding for the engine, which would power F-35 Joint Strike Fighter aircraft, was “uncertain” after US president Barack Obama suggested he wanted to end it.

However, bosses were upbeat in their message to investors.

Outgoing chief executive Sir John Rose said: “Rolls-Royce has delivered a strong performance in 2010 with record underlying revenues and profits.

“This reflects our global customer base and the balanced portfolio of products and services that we offer.”

Yesterday, Rolls-Royce shares dipped slightly by one per cent to 649p following the announcement.

The company’s Barnoldswick workers make fan blades for their engines.