Aero-engine manufacturer Rolls-Royce has announced a 9% rise in profits, after cutting 5,000 jobs in the wake of the 11 September terror attacks.

The jobs were shed in October as the aviation industry worldwide suffered a severe downturn, with 3,800 of the job cuts in Rolls-Royce's UK operations.

The company said it was now more balanced and had a good order book and strong market position.

Chief executive John Rose said there were no plans for further redundancies.

Looking ahead

"We don't see any additional over those already set out in October," he said.

"The restructuring programme is proceeding in line with forecasts."

In 2001, Rolls-Royce improved pre-tax profits before exceptional items by 9% to �475m ($679m).

The company also confirmed earlier forecasts that figures for 2002 would be affected by the downturn in the aviation market.

In Rolls-Royce's core civil aerospace business, profits are expected to be about half those recorded this year.

However, the company said after-market business had become crucial during the downturn and now represented 40% of group sales.

It added that it was well positioned for a return to profits growth in 2003.

Thursday's statement was well received in the City, where Rolls-Royce shares stood 12p higher at 182p in early trade.