ST Engineering profits up 3.4% to $139.14m in Q3

Contributions from MRAS boosted profits in the Aerospace sector.

Singapore Technologies Engineering’s (ST Engineering) net profit climbed 3.4% YoY to $139.14m in Q3, the company announced. Revenue jumped 27.2% to $2.07b over the same period.

In the first nine months of 2019, its profits rose 10.4% to $408.42m, whilst revenue grew 13.3% to $5.58b.

The increase in net profit was attributed to contributions from the Aerospace sector and others. The former saw a 17% rise to $65m mainly from new income stream contribution from Middle River Aerostructure Systems (MRAS), net favourable impact from end-of-programme reviews and recognition of tax credit.

However, it was partially offset by the absence of gain from portfolio rationalisation, timing differences in project revenue recognition, and impairment of assets.

The net profit of the Marine sector plummeted 73% to $3.4m mainly from provision for amount payable to a customer under an arbitration outcome, although partially offset by higher revenue from Engineering business group.

Profits from the Electronics sector also fell 7% to $51.5m largely due to increased investments in new growth areas, whilst Land Systems sector dropped 14% to $15.1m mainly from absence of prior year tax credit and higher operating expenses from investing in robotics.

The group clinched a total of $1.8b worth of new contracts for the quarter. As of 30 September, its order book stood at $15.9b, with $2.2b to be delivered by end-2019.

Photo from ST Engineering website

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia