By Jonathan Buck
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Engine maker Rolls-Royce Group PLC (RR.LN) Tuesday said it continued to trade in line with its expectations, but cautioned that its markets so far showed no signs of recovery.
"Whilst some emerging economies have shown signs of recovery, there is no evidence yet of a sustained and general return to growth across the group's markets," Chief Executive John Rose said in a trading update for the period from July 1 to Nov. 2.
Rolls-Royce, the world's second-largest maker of commercial and military jet engines after General Electric Co. (GE), said it continued to expect underlying revenue in 2009 to grow, with underlying profit broadly similar to that achieved in 2008.
In line with previous guidance, the board also expects a modest cash outflow this year and an increase in the average net cash balance.
"We have strong positions in markets with long-term growth potential and we have a record order book, which has been increasing despite some minor cancellations," Rose said. "We continue to invest despite this general economic downturn to support the growing demand for our products and services and we have the financial strength to take advantage of opportunities as they arise."
The company's shares closed Monday at 452 pence. The stock has gained 40% since the start of 2009 while the Dow Jones Stoxx Europe 600 industrials goods and services sector has shed a quarter of its value in the same period.
Company Web site: www.rolls-royce.com
-By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 8237; jonathan.buck@dowjones.com