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ST Engineering Posts Comparable PBT In 1H2014 vs 1H2013

FINANCIAL HIGHLIGHTS for the second quarter ended 30 June 2014

 

2014
2Q

2013
2Q

Growth
%

2014
1H

2013
2H

Growth
%

Revenue ($m)

 1,586

1,597

(1)

3,138

3.142

-

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

148.2

177.7

(17)

281.7

320.9

(12)

Other income, net ($m)

5.6

5.2

7

23.0

14.6

58

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

0.9

(6.0)

116

(3.2)

(7.5)

57

Profit before tax (PBT) ($m)

163.7

186.9

(12)

331.6

345.6

(4)

Profit attributable to shareholders ($m)

133.2

147.9

(10)

270.4

281.9

(4)

Earnings per share (cents)

4.28

4.78

(11)

8.68

9.11

(5)

 

 

  • ·  Commercial sales constituted 62% or $1.0 billion of 2Q2014 revenue
  • Order book of $13.4  billion at end June 2014, of which about $2.6 billion is expected to be delivered in the second half of 2014
  • Cash  and  cash  equivalents  including  funds  under  management  totalled $1.8 billion
  • Advance payments from customers totalled $1.8 billion
  • Economic  value  added  for  first  half  of  2014  was  $179.8 million  (1H2013: $176.9 million)

 

Group 2Q2014 Unaudited Results and ST Engineering Results Presentation 2Q2014

 

N.B.: All currencies are in Singapore dollars

 

Singapore, 13 August 2014 - Singapore Technologies Engineering Ltd (ST Engineering) announced today that the Group posted quarterly revenue of $1.59b for the second quarter ended 30 June 2014 (2Q2014), which is comparable with the prior year’s revenue in the same period. The Land Systems sector saw lower revenue due to fewer deliveries in its Automotive business group in the second quarter. The other three sectors - Aerospace, Electronics and Marine registered growth of between 6% and 12% year-onyear.

In 2Q2014, all sectors except for the Electronics sector, recorded lower profit before tax (PBT) resulting in a 12% drop in Group PBT to $163.7m from $186.9m in the same period last year. PBT for the Aerospace sector was 9% lower at $72.9m, Land Systems sector was 46% lower at $18.2m and Marine sector was 31% lower at $24.7m. PBT for the Electronics sector was comparable at $48.2m. Net profit after tax (Net Profit) in 2Q2014 for the Group was $133.2m, representing a 10% decrease from $147.9m in the same period last year.

Six Months Results

On a half-yearly basis (1H2014), the Group’s financial results were comparable to the same period last year. Group revenue stood at $3.14b, and PBT was $331.6m compared to $345.6m while Net Profit was $270.4m versus $281.9m. Aerospace sector’s revenue of $1.04b was 6% higher from $982m while its PBT was comparable at $147.6m. The Electronics sector posted comparable revenue and PBT of $749m and $80.5m respectively. Revenue for the Land Systems sector was $618m, down 16% from $738m and its PBT was $37.1m, down 32% from $54.6m in 1H2013. The Marine sector posted revenue of $671m, up 19% from $565m and PBT of $56.2m, a decline of 14% from $65.3m in the same period last year.

 

 

"Compared to 2Q2013, 2Q2014 recorded comparable Revenue and a lower PBT.

Compared to 1H2013, the Group reported comparable Revenue and PBT for 1H2014.

Although the global market remains weak and uncertain, the Group has maintained a strong order book of $13.4b. Cash and cash equivalents including funds under management remained high at $1.8b after payment of the final dividend for FY2013 of $374m.

The Board of Directors has approved the payment of an interim ordinary dividend of 4 cents per share, payable on 4 September 2014.

Barring unforeseen circumstances, the Group expects to achieve comparable Revenue and PBT for FY2014 vis-à-vis FY2013."

 

~ TAN Pheng Hock

President & CEO, ST Engineering

 

Business Highlights 

In 2Q2014, commercial sales accounted  for 62% or $1b of Group  revenue.   Order book stood at $13.4b as of the end of June 2014, and the Group expects to deliver $2.6b worth of orders in the remaining year. 

Total  contracts worth  about  $1.2b were  announced  in  2Q2014.   The Aerospace  sector announced $520m worth of contracts  for  airframe, component and engine maintenance, freighter  conversion,  cabin modification,  engine wash  and  pilot  training.    The  contracts included  a  five-year  agreement with  a  regional US  airline  for  heavy maintenance  of  42 Embraer E-170  and E-175 aircraft at the sector.s San Antonio facility.   The Electronics sector announced contracts of about $580m for its intelligent transportation, satellite and broadband  communications,  as  well  as  advanced  electronics  and  Information Communications  Technologies  solutions.    The  Land  Systems  arm  secured  a  $100m contract  for  the  supply  of  40 MAN  A24  articulated  buses  and  332 MAN  A22  12-metre buses to SMRT Buses Ltd.

 

Interim Dividend

The  interim ordinary  dividend of 4 cents per  ordinary share, as approved by  the Board will be paid out to shareholders on 4 September 2014.

 

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  $6.63b  in FY2013 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  23,000  employees worldwide,  and  over  100  subsidiaries  and  associated  companies  in  46  cities  across  24 countries.  Please visit www.stengg.com for more information.

 

Media contact:
Lina Poa
SVP, Corporate Communications
ST Engineering
Tel: (65) 6722 1883    
Email: linapoa@stengg.com

 

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