ST Engineering profit up 9% to $146.4m in 3Q12

All sectors except Marine grew revenue.

In a release accompanying its latest results, Singapore Technologies Engineering Ltd (ST Engineering) announced that it turned in a better performance for the third quarter ended 30 September 2012 (3Q2012) over the same period last year.

Group revenue grew 11% or $147m to $1.54b, driven by higher revenue contributions from all sectors except for the Marine sector. Profit before tax (PBT) increased 11% or $18.8m to $184.7m and net profit after tax (Net Profit) grew 9% or $12.6m to $146.4m.

In 3Q2012, the Aerospace sector’s revenue of $505m was higher by 9% or $41m, and its PBT of $85.3m was comparable year-on-year. The Electronics sector’s 3Q2012 PBT was 11% or $3.8m higher at $40.1m on the back of a 10% or $30m increase in revenue to $341m. Compared to the same period last year, the Land Systems sector’s 3Q2012 revenue rose 27% or $84m to $391m, while PBT rose 30% or $4.6m to $19.9m. The Marine sector’s 3Q2012 revenue of $236m was lower by 7% or $19m, while its PBT was comparable year-on-year.

For the nine months ended 30 September 2012, the Group registered a 5% increase in revenue to $4.65b, while PBT and Net Profit rose 14% and 13% respectively to $534.6m and $424.0m, over the same period last year.

“Both the Group Revenue and PBT grew by about 11% and Net Profit improved 9% to $146.4m compared to 3Q2011. The Group registered 5% Revenue growth for 9M2012 over 9M2011. PBT and Net Profit grew stronger at 14% and 13% respectively. The Group’s order book as at end September was a healthy $12.5b," said Tan Pheng Hock, President & CEO, ST Engineering. "Barring unforeseen circumstances, the Group expects to achieve higher Revenue and PBT for FY2012 over FY2011.”

Commercial sales accounted for 65% of 3Q2012 revenue. The Group’s cash and cash equivalents, and short-term investments remained strong at $2.0b. As at the end of September 2012, the Group’s order book stood at $12.5b, of which about $1.4b is expected to be delivered in the fourth quarter.

The Group announced a healthy pipeline of new contracts worth about $1.04b in 3Q2012. The Aerospace sector secured about $692m worth of contracts that included the Maintenance-by-the-Hour support for 75 of AirAsia’s Airbus A320 aircraft over 10 years; the Electronics sector won $166m contracts for its Rail Electronics and Satellite Communications and Sensor solutions; while the Marine sector was awarded $179m contracts in shipbuilding and shiprepair that included two Offshore Support Vessels for Hornbeck Offshore Services.

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