News - ST Engineering Reports Higher Profits in 3Q2017 vs 3Q2016

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ST Engineering Reports Higher Profits in 3Q2017 vs 3Q2016

 

FINANCIAL HIGHLIGHTS
For the third quarter ended
30 September 2017

 

2017
3Q

2016
3Q

Growth
%

2017
9M

2016
9M

Growth
%

Revenue ($m)

1,622

1,613

1

4,917

4,863

1

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

146.1

82.0

78

393.6

316.3

24

Other income, net ($m)

9.2

10.7

(14)

31.6

57.4

(45)

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

(3.3)

0.6

NM

(11.7)

(14.8)

21

Profit before tax (PBT) ($m)

162.9

106.6

53

449.7

407.3

10

Profit attributable to shareholders (Net Profit) ($m)

128.4

76.7

67

343.4

314.1

9

Earnings per share (cents)

4.12

2.47

67

11.03

10.12

9

NM:  Not Meaningful

  • Strong order book of $13.3b at end September 2017, of which about $1.2b is expected to be delivered in the remaining months of 2017
  • 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 $1.1b

N.B.: All currencies are in Singapore dollars

Group 3Q2017 Unaudited Results and ST Engineering Results Presentation 3Q2017

Singapore, 8 November 2017 - Singapore Technologies Engineering Ltd (ST Engineering) today announced that it registered higher year-on-year profits for its third quarter ended 30 September 2017 (3Q2017).

3Q2017 versus 3Q2016

Group revenue of $1.62b came in with higher Profit before tax (PBT) of $162.9m, up 53% from $106.6m, and higher Profit attributable to shareholders (Net Profit) of $128.4m, up 67% from $76.7m.   Higher profits were largely due to the absence of the $61.1m one-off charge incurred in 3Q2016 for its Specialty Vehicle business in China.

At the business sector level compared to the same period last year, the Aerospace sector revenue grew 8% to $608m from $563m and its PBT was $66.3m compared to $65.2m.  Revenue for the Electronics sector was 6% higher at $495m from $466m, and its PBT was $55.6m compared to $52.8m. The Land Systems sector revenue was $331m versus $350m and its PBT was at $15.1m compared to a loss that resulted from the one-off charge for its Specialty Vehicle business in China in 3Q2016.  Revenue for the Marine sector dropped 22% to $164m from $211m.  Its year-on-year PBT was down 45% to $21.1m from $38.7m, but was higher when compared to a loss before tax of $8.1m in 2Q2017.

For 3Q2017, commercial sales and defence sales constituted 63% or $1.0b, and 37% or $0.6b respectively of Group revenue.  The quarter ended with cash and cash equivalents including funds under management of $1.1b, after drawing down our cash for the payment of $156m interim dividend, and to fund the acquisitions of Aethon Inc. ($50m) and marine repair assets ($34m) in the US.

9M2017 versus 9M2016

On a nine-month basis against the same period last year, the Group’s PBT rose 10% to $449.7m from $407.3m on a Group revenue of $4.9b, while its Net Profit grew 9% to $343.4m from $314.1m.

Its Aerospace sector posted comparable revenue of $1.8b and PBT of $223.3m versus $214.5m in 9M2016.   Revenue for the Electronics sector was $1.64b, up 20% from $1.37b and its PBT was $149.4m versus $143.6m in the same period last year.  Revenue for the Land Systems sector was $906m, down 6% from $964m, and its PBT up 409% to $60.7m from $11.9m in 9M2016.  The Marine sector came in with revenue of $506m, down 25% from $672m and its PBT down 65% at $22.0m from $62.6m in 9M2016.

“We continue to position the Group for long-term sustainable growth and value creation.  We acquired a US robotics company, Aethon, and marine repair assets in the US to strengthen our capability and service offerings.

ST Marine is part of a consortium that was named the preferred bidder by PUB to design, build, own and operate Singapore’s fifth desalination plant, the Jurong Island Desalination Plant. This award will give our environmental engineering business a boost.  The consortium has since set up a concession company to jointly undertake this Project.  Our corporate venture capital unit made its first investment, taking a stake in Janus Technologies, Inc., a US-based endpoint cyber security provider.  That led to a collaboration in which ST Electronics launched the Black Computer L100, an industry-first hardware-based cyber security solution. 

Our order book continues to be strong, and we maintain our outlook of comparable revenue and PBT for the year.” 

Vincent Chong, President & CEO, ST Engineering

Order book and new contract wins announced in 3Q2017

For 3Q2017, the Group announced about $1.1b worth of contracts.  Order book remained high at $13.3b, of which about $1.2b will be delivered in the remaining months of 2017.

The Aerospace sector secured contracts of about $530m for services ranging from heavy airframe and engine maintenance, component repair and overhaul to cabin retrofit, while the Electronics sector clinched about $585m worth of contracts for Rail Electronics & Intelligent Transportation, Satellite & Broadband Communications, as well as Advanced Electronics and Information Communications Technologies solutions.

In addition to the contracts announced, the Land Systems sector also secured orders for its 40mm munitions as well as for its Road Construction Equipment and Specialty Vehicles from customers in Asia, Latin America and North America.  The Marine sector undertook various ship repair projects in its US and Singapore yards.

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

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

 

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