Singapore, 9 May 2012 - Singapore Technologies Engineering Ltd (ST Engineering) today reported improved margins with double-digit profit growth on comparable revenue of $1.54b for the first quarter of 2012, compared to the same period last year. Aerospace and Electronics sectors registered comparable revenue of $456m and $452m respectively, while revenue for Land Systems and Marine sectors were down 11% and 10% at $317m and $244m respectively.
While revenue was flat year-on-year, Group’s profit before tax (PBT) grew 17% or $24m to $162m, and net profit after tax (Net Profit) grew 21% or $23.3m to $134.4m. Aerospace sector’s PBT increased 5% to $59.8m due to favourable sales mix, although it was partially offset by lower other income and unfavourable foreign exchange impact. Electronics sector recorded comparable PBT of $33.7m, while Land Systems sector recorded 7% lower PBT at $23.7m due to higher operating expenses and finance costs. Marine sector’s PBT of $29.1m, up significantly by 20%, was due to favourable sales mix despite its lower revenue.
“The Group registered higher profits in the first quarter of this year over the corresponding quarter of 2011. While Revenue was flat at $1.54b, margin improved with PBT and Net Profit rising by 17% and 21% to $162m and $134.4m respectively. EBIT increased 13%, reflecting robust operating performance in the business units. The Group generated good operating cash flow of $547m and ended the quarter with a strong order book of $12.2b.
Barring unforeseen circumstances, the Group expects to achieve higher Revenue and PBT for FY2012 compared to FY2011.” ~ TAN Pheng Hock, President & CEO, ST Engineering
Commercial sales accounted for 60% or $930m of revenue. As at 31 March 2012, the Group's cash and cash equivalents, and short-term investments totalled $2.25b. Order book remained strong at $12.2b, of which about $3.2b is expected to be delivered in the remaining months of 2012. This order book of $12.2b does not include the Marine sector's $880m contract with Royal Navy of Oman announced on 9 April 2012.
In the first quarter, all four sectors built up momentum for contract wins with announced contract value of $773m. The Aerospace sector secured contract value of about $540m while the Electronics sector another $100m for its rail electronics solutions and satellite communications systems. ST Kinetics won a $58m contract to supply its patented 120mm Super Rapid Advanced Mortar Systems overseas, and ST Marine secured two shipbuilding contracts worth about $75m from Swire Pacific Offshore Operations, further strengthening its track record in the Offshore Support Vessels market.
In February at the Singapore Airshow 2012, the Group displayed great dynamism, showcasing its best innovative solutions and capabilities in full scale across air, land and sea, for both commercial and defence markets. In focus at the show were the Group’s integrated solutions and collective expertise across all sectors in enabling customers’ operational readiness, and immediate capability enhancement, including its capabilities to support the modernisation of armed forces through operationalised and tested solutions. New ideas and products showcased included indigenous unmanned air systems such as Next Generation Control System and Skyblade 360; Bronco New-Gen, the newest iteration of the battle-proven Bronco All Terrain Tracked Carrier; and AgilFence PIDS, the locally designed and developed solution for fence security.
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of $5.99b in FY2011 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, FTSE ASEAN 40 Index, MSCI Singapore and other indices. ST Engineering has more than 22,000 employees worldwide, and over 100 subsidiaries and associated companies in 23 countries and 41 cities. Please visit www.stengg.com.
SVP, Corporate Communications
Tel: (65) 6722 1883