Double dose of good news a welcome boost for Rolls-Royce

Rolls-Royce gave investors a welcome distraction from its super-jumbo engine woes yesterday, after securing a £63 million slice of an engine deal with Brazil's TAM Airlines and announcing the first order for a new "wave-piercing" ship.

Shares in the engineering giant - which is still working with airlines to replace faulty Trent 900 engines that power the A380 jetliner - received a much-needed boost from the double stroke of good news, closing up 10.5p at 599.5p.

TAM Airlines has ordered V2500 engines to power ten Airbus aircraft as it expands service after earlier this year announcing plans for a merger with LAN of Chile that would create Latin America's largest airline. The V2500 is produced by the International Aero Engines consortium in which Rolls-Royce is a senior partner.

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Rolls-Royce also revealed that it had received the first order for its new wave-piercing ship from Farstad Shipping, which is worth more than 12m and includes an option for a second vessel of the same value.

The ship has a streamlined bow to pierce through waves in extreme weather while maintaining constant speed.