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ST Engineering Reports Comparable Revenue and PBT for 1Q2017

 

FINANCIAL HIGHLIGHTS for the first quarter ended 31 March 2017

 

2017
1Q

2016
1Q

Growth
%

Revenue ($m)

1,539

1,627

(5)

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

116.7

97.2

20

Other income, net ($m)

11.7

22.1

(47)

Finance costs, net ($m)

(5.1)

(11.5)

56

Profit before tax (PBT) ($m)

137.0

130.4

5

Profit attributable to shareholders ($m)

103.4

110.2

 (6)

Earnings per share (cents)

3.33

3.53

 (6)

 

  • Commercial sales constituted 68% or $1.0b of revenue
  • Order book of $13.3b at end March 2017, of which about $3.0b is expected to be delivered in the remaining months of 2017
  • Cash and cash equivalents including funds under management totalled $1.7b
  • Advance payments from customers totalled $1.6b

Group 1Q2017 Unaudited Results and ST Engineering Results Presentation 1Q2017

N.B.: All currencies are in Singapore dollars

Singapore, 12 May 2017 - Singapore Technologies Engineering Ltd (ST Engineering) today announced that it registered comparable revenue and PBT for its first quarter ended 31 March 2017 (1Q2017) over the same period last year.

Group revenue was $1.54b compared to $1.63b the year before as its Aerospace, Land Systems and Marine sectors posted lower revenue.  Quarterly Profit before tax (PBT) was $137.0m, up 5% compared to $130.4m recorded in 1Q2016, and Profit attributable to shareholders (Net profit) at $103.4m was 6% lower against $110.2m for the same period last year.

At the business sector level compared to the same period last year, revenue for the Aerospace sector was 12% lower at $549m versus $622m and its PBT was comparable at $78.1m.  Revenue for the Electronics sector was up 14% to $523m from $457m and its PBT was comparable at $41.7m.  Revenue and PBT for the Land Systems sector came in lower with a 14% drop in revenue to $273m from $316m, and an 11% drop in PBT to $16.2m from $18.3m.  Revenue for the Marine sector at $179m was 16% lower versus $213m while its PBT was 165% higher at $9.0m from $3.4m.

“For the first quarter of 2017, the Group reported year-on-year comparable Revenue and PBT.

We continued to secure orders in 1Q2017 and concluded the quarter with a strong order book of $13.3b. Cash and cash equivalents including funds under management remain at a healthy level of $1.7b.

Amidst global uncertainties, the Group adopts a cautious position at this time and maintains its outlook that FY2017 Revenue will be comparable to, and PBT will be higher than that of FY2016.  We will provide an update at mid-year.”

Vincent Chong, President & CEO, ST Engineering

 

Commercial business accounted for 68% or $1.0b of the Group’s 1Q2017 revenue.  The Group ended the first quarter with an order book of $13.3b, of which it expects to deliver $3.0b of orders in the remaining months of 2017.

1Q2017 New Wins

In the first quarter, the Group announced about $1.57b worth of new contracts, which included several multi-year renewal agreements for the Aerospace sector. The Aerospace sector’s new wins of $1.1b cover performance-based logistics operation and support for military aircraft, several components repair and overhaul agreements, and contracts for EcoPower® engine wash services. The Electronics sector announced contracts worth $464m for Rail Electronics & Intelligent Transportation, Satellite & Broadband Communications, as well as Advanced Electronics & Information Communications Technologies solutions.

In addition to the announced contracts, the Land Systems sector secured supply contracts for 40mm munitions from customers in Asia and the Middle East, as well as orders for its Road Construction Equipment and Specialty Vehicles from customers around the world.  At the Marine sector, its US yard was one of the five recipients for a 12-month contract to work on a Heavy Polar Icebreaker Design and Analysis for the US Coast Guard.

ST Engineering is an integrated defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. It has global presence with offices in Asia, the Americas, Europe and the Middle East and employs about 22,000 employees. Across the globe, its employees bring innovation and technology together to create smart engineering solutions for its customers in the defence, government and commercial segments. Headquartered in Singapore, ST Engineering reported revenue of S$6.68b in FY2016 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

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