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For the third quarter ended
30 September 2018









Revenue ($m)







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







Other income, net ($m)







Finance income/(costs), net ($m)







Profit before tax (PBT) ($m)







Profit attributable to shareholders ($m)







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NM:  Not Meaningful

* Comparative figures were restated on the adoption of Singapore Financial Reporting Standards (International) (SFRS(I)) with effect from 1 January 2018

  • Order book of $13.3b at end September 2018, of which about $1.6b is expected to be delivered in the remaining months of 2018
  • Commercial sales and defence sales constituted 73% or $1.2b and 27% or $0.4b respectively
  • Cash and cash equivalents of $0.4b

N.B.: All currencies are in Singapore dollars

Group 3Q2018 Unaudited Results and ST Engineering Results Presentation 3Q2018

Singapore, 14 November 2018 - Singapore Technologies Engineering Ltd (ST Engineering) today reported that Group revenue for its third quarter ended 30 September 2018 (3Q2018) came in slightly higher at $1.63b compared to the same period last year.  Group profit before tax (PBT) grew 2% to $165.8m from $162.2m, and Profit attributable to Shareholders (Net Profit) rose 5% to $134.6m from $127.8m in the same period last year.  

Business sectors: 3Q2018 versus 3Q2017

Year-on-year, both revenue and Net Profit for the Aerospace sector grew 13% to $689m and $55.4m respectively led by broad-based growth from its business groups.  Revenue for the Electronics sector was $491m, up 2% from the year before driven by higher revenue recognition from its Large-scale Systems group and Communication & Sensor Systems group, and its Net Profit rose 30% year-on-year to $55.5m largely due to higher revenue and lower operating expenses.  In spite of a 10% year-on-year drop in revenue to $297m, Net Profit for the Land Systems sector came in 45% higher at $17.6m due to favourable sales mix. Market conditions remained challenging for the Marine sector as it posted a 16% drop in revenue to $137m, and a 35% drop in Net Profit to $12.8m compared to the year before.

“A key highlight of the third quarter was our proposed acquisition of MRASi.  This business will help scale up our aerospace capabilities by moving us upstream into the OEM business of high-value components.  We are excited by the role it will play in the growth of our Aerospace sector, and look forward to closing the transaction in the first quarter of 2019. 

We continue to be well placed to deliver long-term sustainable growth.  Our innovative and differentiated Smart City solutions are gaining traction outside of our traditional markets as more cities embrace technology for development and modernisation. 

Our robust order book of $13.3b continues to provide a strong revenue pipeline.” 

Vincent Chong, President & CEO, ST Engineering

For 3Q2018, commercial sales and defence sales constituted 73% or $1.2b and 27% or $0.4b respectively of Group revenue.  Cash and cash equivalents reduced to $0.4b as at 30 September 2018 after drawing down our cash for the payment of FY2018 interim dividend and the redemption of US$500m Notes issued under the Multicurrency Medium Term Notes Programme.

9M2018 versus 9M2017

In the nine months ended 30 September 2018 (9M2018), the Group’s revenue was 2% higher at $4.9b.  PBT grew 5% and Net Profit rose 11%, increasing the year to-date figure to $460.2m and $369.8m respectively.

Revenue for the Aerospace sector grew 11% year-on-year to $2.0b and its Net Profit improved 15% to $181.2m from a year ago mainly led by higher engine output in its CERO business group.  The Electronics sector posted a revenue of $1.6b, up 4% year-on-year and Net Profit increased 25% year-on-year to $142.4m as a result of favourable sales mix and lower operating expenses. Compared to the same period last year, the Land Systems sector’s revenue dropped 6% to $847m but Net Profit was 19% higher at $53.6m due largely to favourable sales mix.  Revenue for the Marine sector was down 14% to $435m and Net Profit increased 16% to $30.7m from a year ago mainly due to lower allowance for doubtful debts.

Order book and order wins in 3Q2018

The Group ended 9M2018 with an order book of $13.3b, of which $1.6b will be delivered in the remaining months of 2018.  

All sectors across the Group announced new contracts for 3Q2018.  Its Aerospace sector secured $590m worth of contracts for 3Q2018 including several multi-year agreements for airframe, engine and component maintenance and engine wash services, while its Electronics sector announced $435m of new orders in Smart City related projects including mobility, satellite communications, Internet of Things and cybersecurity.  At the Land Systems sector, the Group secured numerous contracts including the supply of a fleet of 111 Euro 6 diesel buses to the Land Transport Authority, and new orders for its weapon & munitions from customers globally. Its Marine sector secured contracts (including options) worth about $431m for new builds as well as ship and rig repair works.  These contracts covered detailed design and construction for two firm and up to four optional Auxiliary Personnel Lighter berthing barges from the US Navy, and an Articulated Tug Barge, with an option for a second vessel from long-standing customer, Bouchard transportation Co., Inc, as well as its first refit on a naval platform for a foreign navy.

ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. The Group employs about 22,000 people across offices in Asia, the Americas, Europe and the Middle East, serving customers in the defence, government and commercial segments in more than 100 countries. With more than 500 smart city projects across 70 cities in its track record, the Group continues to help transform cities through its suite of Smart Mobility, Smart Security and Smart Environment solutions. Headquartered in Singapore, ST Engineering reported revenue of S$6.62b in FY2017 and it ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore, SGX ESG Transparency Index and SGX ESG Leaders Index.

For further enquiries, please contact:

Lina Poa
Head, Corporate Communications & Investor Relations
Tel: (65) 6722 1883

i) ST Engineering entered into a conditional share purchase agreement to acquire a 100% ownership in MRA Systems, LLC (MRAS) from General Electric Company on 13 September 2018.