30 JUNE 1939, Page 40

ROLLS-ROYCE EXPANDING TURNOVER Shareholders in armament companies are by this

time accustomed to an economy of information in their chairmen's speeches which the present situation demands. Nevertheless, Lord Herbert Scott's address at the Rolls-Royce meeting last Friday gave in outline a clear picture of expanding turnover, and of production of aero-engines at full pressure. Full production of the Merlin engine was continued with double- shift working and overtime throughout 1938. In consequence, turnover rose considerably. But none of the 1938 output was obtained from the new Crewe factory, whereas that factory will make a substantial contribution to the 1939 figures which will, it is anticipated, show a heavy increase in engine deliveries. On the motor-car side of the business, Lord Herbert Scott hopes for an increase in turnover as political tension eases, though he fears that the increase in the horse- power tax cannot have anything but unfavourable repercussions.