News - ST Engineering Delivers Higher Revenue and Net Profit for 1Q2018 vs 1Q2017

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ST Engineering Delivers Higher Revenue and Net Profit for 1Q2018 vs 1Q2017

 

FINANCIAL HIGHLIGHTS 
F
or the first quarter ended
31
 March 2018

        2018
1Q
2017
1Q
(Restated)*
Growth
%
Revenue ($m) 1,647 1,511 9
Earnings before interest and tax (EBIT) ($m) 122.1 112.6 8
Other income, net ($m)
8.6
11.7 (26)
Finance costs, net ($m)
(2.2)
(5.4)
(59)
Profit before tax (PBT) ($m)
144.0
132.7 9
Profit attributable to shareholders (Net Profit) ($m)
117.7
99.9 18
Earnings per share (cents)
3.78
3.21 18

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

  • Order book of $13.4b at end March 2018, of which about $3.2b is expected to be delivered in the remaining months of 2018
  • Commercial sales and defence sales constituted 63% or $1.0b and 37% or $0.6b respectively
  • Cash and cash equivalents including funds under management totalled $1.6b

N.B.: All currencies are in Singapore dollars

Group 1Q2018 Unaudited Results and ST Engineering Results Presentation 1Q2018

Singapore, 11 May 2018 - Singapore Technologies Engineering Ltd (ST Engineering) today reported that it achieved higher year-on-year revenue and net profit for its first quarter financial results for the period ended 31 March 2018 (1Q2018).  Group revenue was 9% higher at $1.65b compared to $1.51b in the same period last year, and its Profit Attributable to Shareholders (Net Profit) improved 18% to $117.7m from $99.9m a year ago.

At the business sector level, the Aerospace sector posted revenue of $599m, up 9% from $548m the year before. Its Net Profit was 6% higher at $59.2m compared to $56.1m a year ago.  Revenue for the Electronics sector was $605m, up 22% from $496m and its Net Profit was $40.3m, 23% higher compared to $32.8m in the same period last year. Revenue for Land Systems sector was 3% higher at $281m from $273m the year before, and its Net Profit grew 34% to $15.6m from $11.6m a year ago. The Marine sector revenue declined 16% to $150m from $179m in the same period last year.  Its Net Profit was $8.7m, up 7% from $8.1m a year ago mainly as a result of lower provision for doubtful debts and partly offset by a weak US shipbuilding performance.

“We started the year with healthy revenue growth and net profit. We also secured numerous contracts including Smart City projects in the past quarter. With a strong order book, the Group remains on track for steady growth,” said Vincent Chong, President & CEO, ST Engineering.

Commercial sales and defence sales in 1Q2018 constituted 63% or $1.0b, and 37% or $0.6b respectively of the Group’s revenue.  Cash and cash equivalents including funds under management remained healthy at $1.6b as at 31 March 2018.

Order book sustained by contract win momentum in 1Q2018

The Group ended 1Q2018 with an order book of $13.4b, and it expects to deliver about $3.2b in the remaining months of 2018.

The Aerospace sector announced $510m worth of new orders for services ranging from airframe heavy maintenance support, cabin interior reconfiguration to contracts for EcoPower® engine wash services. The Electronics sector announced $635m worth of contracts including many Smart City offerings like mobility solutions, satellite communications, public safety and security and deployment of IoT networks and smart sensors for urban management.

In addition to the contracts announced, the Land Systems sector also clinched orders for weapons and ammunition as well as for its road construction equipment and specialty vehicles from customers in Asia, Latin America and North America. The Marine sector’s operating environment remains challenging even as it secured various ship repair projects at its US and Singapore yards, and completed several rig repair and decommissioning works in the first quarter.

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 more than 100 countries.  Its employees bring innovation and technology together to create smart engineering solutions for customers in the defence, government and commercial segments. 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 and the SGX Sustainability Leaders Index. Please visit www.stengg.com for more information.

For further enquiries, please contact:

Lina Poa
Head, Corporate Communications & Investor Relations
ST Engineering
Tel: (65) 6722 1883
Email: linapoa@stengg.com

Sylvia Lee
Assistant Manager, Investor Relations
ST Engineering
Tel: (65) 6722 1849
Email: lee.ruiting.sylvia@stengg.com

 

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