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FINANCIAL HIGHLIGHTS for the second quarter ended 30 June 2016








Revenue ($m)







Earnings before interest and tax (EBIT) ($m)







Other income, net ($m)







Finance costs, net ($m)







Profit before tax (PBT) ($m)







Profit attributable to shareholders ($m)







Earnings per share (cents)








  • Commercial sales constituted 65% or $1.1 billion of 2Q2016 revenue
  • Order book of $11.6 billion at end June 2016, of which about $2.5 billion is expected to be delivered in the remaining months of 2016
  • Cash and cash equivalents including funds under management totalled
    $1.3 billion
  • Advance payments from customers totalled $1.6 billion
  • Economic value added for first half of 2016 was $152.4 million (1H2015: $173.4 million)

  N.B.: All currencies are in Singapore dollars

Group 2Q2016 Unaudited Results and ST Engineering Results Presentation 2Q2016

Singapore, 12 August 2016 – Singapore Technologies Engineering Ltd (ST Engineering) today announced financial results for its second quarter ended 30 June 2016 (2Q2016).  The Group ended the quarter with revenue of $1.62b, compared to $1.55b in the same period last year.  Profit before tax (PBT) was $170.3m, up 7% from $158.5m posted in the same period last year. Year-on-year profit attributable to shareholders (Net profit) was comparable at $127.3m.

Contribution by its new subsidiary, Elbe Flugzeugwerke, boosted 2Q2016 revenue for the Aerospace sector to $619m, up 20% from $515m a year ago in the same period.  2Q2016 PBT at $74.2m for the Aerospace sector was comparable against the same period last year.  Revenue for 2Q2016 for the Electronics sector was $445m, up 8% from $413m, and PBT for 2Q2016 was $51.2m, up 10% from $46.6m a year ago.  While 2Q2016 revenue for the Land Systems sector was down 11% at $283m, from $317m, it posted 71% increase in PBT for 2Q2016 to $27.8m from $16.3m as a result of a gain on divestment of its speciality vehicle business in China.  The Marine sector posted comparable revenue of $248m for 2Q2016, with quarterly PBT of $20.4m, down 31% from $29.6m a year ago due to weak performance of shipbuilding and higher operating expenses.

Six Months Results: 1H2016 versus 1H2015

On a half-yearly basis (1H2016), the Group posted higher revenue of $3.25b, up 6% compared to $3.06b a year ago. PBT was comparable at $300.7m and Net Profit was $237.5m, 7% lower compared to $255.0m a year ago.

At the business sectors, revenue for the Aerospace sector grew 24% to $1.24b from $1.0b, and its PBT was comparable at $149.3m.  Revenue for the Electronics sector grew 17% to $902m from $769m, and its PBT was $90.8m, up 11% from $81.5m.  Revenue for the Land Systems dropped 15% to $567m from $$663m, but its PBT increased 21% to $39.4m from $32.5m.  The Marine sector saw a drop in both its revenue and PBT, with revenue down 14% to $461m from $534m, and PBT down 55% to $23.8m from $53.0m. 

“For 2Q2016, Group Revenue and PBT came in at $1,623m and $170.3m respectively. There was an increase of $78m in Group Revenue and $11.8m in PBT over the corresponding quarter in 2015. For 1H2016, Group Revenue was higher than that in 1H2015. The PBT for 1H2016 was comparable to that in 1H2015. The Group completed its divestment of Guizhou Jonyang Kinetics Co., Ltd in the quarter, as part of Land Systems sector's continuous review of its specialty vehicle business in China.

The Group continued to secure new orders and ended the quarter with a healthy order book of $11.6b. The Group’s cash and cash equivalents, including funds under management, stand at $1.3b.

Barring unforeseen circumstances, the Group expects FY2016 Revenue to be higher, but PBT to be lower compared to FY2015.  The global economic outlook remains challenging with industry headwinds facing the marine business, the slow-down in the China economy, and negative business sentiment that is prevalent in Europe and other parts of the world.” ~Tan Pheng Hock, President & CEO, ST Engineering

Commercial sales accounted for 65% or $1.1b of Group’s 2Q2016 revenue.  Order book stood at $11.6b, compared to $11.5b as at end March 2016.  The Group expects to deliver $2.5b of orders in the remaining months of 2016.

Interim Dividend

The interim ordinary dividend of 5.0 cents per ordinary share, as approved by the Board will be paid out to shareholders on 30 August 2016.

New Contracts in 2Q2016

In 2Q2016, the Group announced about $1.42b worth of new contracts, comprising $770m for the Aerospace sector and $650m for the Electronics sector.  Contracts for the Aerospace sector were for projects ranging from airframe maintenance and cabin interiors, to engine wash, and component repair and overhaul.  New contracts for the Electronics sector included projects for Rail Electronics & Intelligent Transportation, Satellite & Broadband Communications, as well as Advanced Electronics & Information Communications Technologies solutions.  Projects secured included an overseas rail electronics project, a facility upgrade for a new Air Traffic Control Tower at Maun Airport in Botswana, and the maintenance and support of a large public security project in the Greater China region.

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 revenue of $6.34b in FY2015 and ranks among the largest companies listed on the Singapore Exchange.  It is a component stock of the FTSE Straits Times Index, MSCI Singapore and the SGX Sustainability Leaders Index.  ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries.  Please visit for more information.

Media contact: 
Lina Poa
SVP, Corporate Communications
ST Engineering
Tel: (65) 6722 1883