Rolls-Royce has reported a 32 percent drop in half-year profits but the result was slightly better than expected after the engine maker slashed its forecasts three times in the last nine months.

Earlier this week Rolls-Royce announced an investment of up to £60million in its facility in Inchinnan in Renfrewshire, creating around 130 jobs and partially offsetting the 187 job losses announced in March.

Rolls-Royce shocked investors earlier this month when it warned profits at its main aero engines business would falter next year, adding to declines seen in its marine division, where a lower oil price has caused a slowdown in orders from energy customers.

That warning turned up the heat for new chief executive Warren East who joined the business this month.

Reassuring investors that there was not another downgrade to come, the company reported on an underlying pre-tax profit of £439m for the first six months of the year, ahead of its own guidance of £390m to £430m.

The company blamed a slowdown in its marine business, a slightly higher research and development charge, and a shift in the mix of airliner engines it sells as newer models are less profitable in the early years.

Shares in Rolls-Royce, which had sunk 17 percent in the past month to hit their lowest level for over three years, rallied by over two per cent.

Mr East said that the second half outlook was positive and beyond that he was working to ensure the company would be able to deliver on its targets.

Having announced an operational review earlier this month, he said he would report his "early priorities" before the end of 2015.

Mr East joined as shake-up plans were already underway in Rolls-Royce's marine and aerospace divisions, with plans to cut 3,200 jobs to improve profit margins.

“I am going to be working with the team to add pace and simplicity into what we're doing,” he said of the restructuring.

The downgrade to its forecasts announced in July, which cut the consensus market forecast for profits next year by about 20 percent, was primarily driven by the civil aerospace division, which accounted for almost half of 2014 revenues.

That knocked confidence in a part of the business which had for years been riding a surge in demand for fuel-efficient engines for power passenger jets made by Airbus and Boeing.

Asked about a possible new aerospace project to provide an engine for a new version of the Airbus A380, Mr East said the company hoped to provide if it could make the business case.

RBC analyst Robert Stallard said in a note: “Given the performance of the share price in July, we think the response from investors today could be one of relief - at least the situation has not got worse,” adding that Rolls still had a lot to do in the second half of the year to meet forecasts