Rolls-Royce sees higher 09 sales, mkts still tough

LONDON (Reuters) - British engine-maker Rolls-Royce Group expects to deliver sales growth in 2009 but said the global aviation and defence markets remained depressed.

"The board continues to expect underlying revenues to grow in 2009, with underlying profits remaining broadly similar to those achieved in 2008," the company said in a third quarter trading update on Tuesday.

Rolls-Royce, which makes engines and turbines for passenger planes, fighter jets, ships and power stations said there was no evidence yet of a sustained and general return to growth across its markets but that some emerging economies had shown signs of recovery.

Like other engine suppliers, Rolls-Royce has been affected by delays in production of two modern airliners, the Airbus A380 and Boeing 787, crimping revenues from engine deliveries and prompting a build-up in inventory.

The company, which split from the luxury car maker of the same name in 1971, said its order book continues to grow despite some minor cancellations and that it would continue to invest despite the economic downturn.

The group, which last week won a $720 million deal to supply Trent 700 engines for 10 Virgin Atlantic airctaft, also plans to proceed with a number of new operational and research facilities in the UK, Singapore and the USA.

(Reporting by Rhys Jones; editing by Tiisetso Motsoeneng)

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