Despite looming cuts to some of its U.S. defense programs, Rolls-Royce is projecting an increase in underlying revenue and profit in 2012.

Although programs such as the Rolls-Royce AE1107C-powered V-22 are expected to be cut, Rolls-Royce North America President and CEO James Guyette expects no more than “a couple of bruises” and “nothing major” from the fiscal 2013 budget release due Feb. 13. Moreover, some of those cuts could still be reversed when Congress mark up the budget request, he told analysts as Rolls-Royce reported full-year results for 2011 today.

The “bread-and-butter” business will remain intact, Guyette says, both in defense aerospace and marine activities.

In its 2012 guidance, Rolls-Royce management says “in defense aerospace we expect modest growth in underlying revenue and profit. In marine we expect a modest increase in underlying revenue, with underlying profit broadly flat. And in energy we see growth in revenue and some improvement in profit.”

Several other key milestones are ahead for Rolls-Rocye, particularly in the commercial aerospace sector, which saw the order book grow 7% last year and pre-financing profit up 27%. The large jump in profit partly reflects last year’s £56 million ($90 million) charge linked to the Trent 900 uncontained engine failure; this year saw another £18 million linked to that mishap.

This month, Rolls-Royce expects the first flight of its TrentXWB on its Airbus A380 testbed.

Also still pending is regulatory approval for Rolls-Royce’s planned sale to Pratt & Whitney of its stake in the International Engine Alliance joint venture. That approval is expected in the first half. Once it occurs, Rolls-Royce will book the $1.5 billion it is due for its 32.5% stake; it also will reduce its order book £4 billion.

Overall, Rolls-Royce ended 2011 with record revenue of £11.3 billion and profit of £1.16 billion, with the order book topping £62 billion.