An upbeat interim statement from Rolls-Royce, the aero-engine manufacturer, has largely shrugged off the effects of any downturn in civil aviation because of the high oil price, the economic slowdown and a dearth of available financing.

The company said its order book had grown by 17 per cent to £53.5 billion, and underlying profits before taxation were up 8 per cent to £410 million during the six months to the end of June. The interim dividend is raised from 4.04p to 5.72p.

Activity in civil aerospace had continued to increase strongly in the first half, despite global economic pressures and rising fuel prices. Sir John Rose, the chief executive, said: "We are confident that we will continue to deliver profitable growth and positive cash flow for the full year."

Several factors were helping Rolls-Royce shake off the consequences of any downturn in aviation, the company said. About three quarters of aerospace revenues come from the corporate and widebody sectors, which remain resilient. Delays on the Airbus A380 and Boeing 787 programmes have caused firmer demand for existing widebody products.

The marine business and sales of gas turbines and compressors were both boosted by high levels of activity in the oil and gas industries.

The decline in the value of the dollar knocked £32 million off interim profits and is set to cost Rolls-Royce about £100 million in the current year, the company forecasts.

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