Rolls Royce says Q1 orders worth almost $15 bln

LONDON (Reuters) - British engine maker Rolls-Royce Group Plc (RR.L: Quote, Profile, Research) said on Wednesday 2008 had started well with first-quarter orders worth almost $15 billion, helped by strong oil and gas markets and continued growth in defence.

Rolls-Royce is best known for aero engines, and booming demand for commercial airlines last year left it with a record order book. But it also has sizeable business making gas turbines for ships and power generation, and in 2007 got 55 percent of its turnover from contracts to service engines.

"The high levels of activity in the oil and gas industry are benefiting our marine and energy businesses and current activity in the defence business remains strong," chief executive John Rose said in a statement.

"Our civil aerospace business continues to enjoy significant order intake particularly in Asia and the Middle East. However, the credit shortage and increased fuel costs are inevitably putting pressure on the airline industry," Rose said.

Overall, trading is meeting expectations, he said.

Looking ahead, "lack of dependence on any one programme or geographical region and the progress being made with managing costs will help the group to respond effectively to the unpredictable economic environment," Rose said.

Rolls-Royce shares, which have underperformed other London-listed aerospace and defence companies .FTASX2710 by 10 percent over the past 12 months, were flat at 446 pence to value the company at 8.3 billion pounds ($16.2 billion).

(Reporting by Dan Lalor; Editing by Quentin Bryar)