Rolls-Royce Group, the world's second largest maker of aircraft engines, reported on July 26 that net profit fell by more than half in the six months ending June 30.

The company reported net profit of 306 million pounds (US$629 million), down 50.6 percent from 619 million pounds in the same period last year. Rolls-Royce said its order book grew by nine billion pounds in the first half of this year to 35.1 billion pounds. Analysts at Fortis Private Investment Management were encouraged by a 17-percent gain in pre-tax profit and a 10-percent boost in dividend payments, but said the order book figures were the key.

"Rolls booked US$15.1 billion of orders at list prices at last month's Paris Air Show alone, and the order book is now 34 percent higher than it was at year-end," Fortis said in a research note.

"Real orders are probably even higher, since many military orders are only confirmed one year ahead, despite commitment extending over much longer periods."

The company's revenue was up six percent to 3.6 billion pounds. Underlying pre-tax profit, a measure which excludes certain financial items and is closely watched by analysts, rose 17 percent to 380 million pounds.