ST Engineering - ST Engineering Reports Lower Year-On-Year Profits For 3Q2014

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ST Engineering Reports Lower Year-On-Year Profits For 3Q2014

FINANCIAL HIGHLIGHTS for the third quarter ended 30 September 2014

 

2014
3Q

2013
3Q

Growth
%

2014
9M

2013
9M

Growth
%

Revenue ($m)

 1,553

1,550

-

4,691

4,692

-

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

142.9

157.9

(10)

424.6

478.8

(11)

Other income, net ($m)

4.7

4.7

-

27.7

19.3

43

Finance costs, net ($m)

(7.6)

(3.8)

(99)

(10.8)

(11.3)

5

Profit before tax (PBT) ($m)

151.7

168.0

(10)

483.3

513.6

(6)

Profit attributable to shareholders ($m)

121.3

131.4

(8)

391.7

413.3

(5)

Earnings per share (cents)

3.89

4.24

(8)

12.57

13.34

(6)

 

 

  • Commercial sales constituted 58% or $0.9 billion of 3Q2014 revenue
  • Order book of $13.2 billion at end September 2014, of which about $1.6 billion is expected to be delivered in the last quarter of 2014
  • Cash and cash equivalents including funds under management totalled $1.6 billion
  • Advance payments from customers totalled $1.7 billion

 

Group 3Q2014 Unaudited Results and ST Engineering Results Presentation 3Q2014

 

N.B.: All currencies are in Singapore dollars

 

Singapore, 7 November 2014 - Singapore Technologies Engineering Ltd (ST Engineering) today reported that financial results for its third quarter ended 30 September 2014 (3Q2014) came in with lower profit before tax (PBT) and net profit after tax (Net profit) on the back of a comparable revenue of $1.55b against the same period last year. Quarterly PBT was $151.7m, down 10% from $168m, and Quarterly Net profit was $121.3m, down 8% from $131.4m.

3Q2014 versus 3Q2013

Group revenue was flat even though the Marine sector recorded higher revenue of $336m, which was largely offset by lower revenue recorded by the Aerospace sector. Revenue for the Aerospace sector was $470m, down 8% from $510m mainly attributable to the Component/Engine Repair & Overhaul business group which generated lower revenue. Revenues for the Electronics and Land Systems sectors were comparable year-on-year.

The weaker performance in the Aerospace sector’s European operations impacted its PBT, which saw a 19% drop to $63.5m from $78.5m a year ago. This in turn impacted the Group PBT even though the Electronics sector enjoyed a 9% increase in PBT to $47m from $43m, and that both the Land Systems and Marine sectors reported comparable PBT against the same period last year.

During the third quarter, commercial sales accounted for 58% or $0.9b of 3Q2014 revenue.

9M2014 versus 9M2013

On a nine months basis, Group revenue against the same period last year was comparable at $4.69b. Revenues for the Aerospace and Electronics sectors were comparable, while revenue for the Land Systems sector was 10% lower at $975m from $1.1b, and revenue for the Marine sector was 17% higher at $1b from $861m.

Group PBT for 9M2014 was $483.3m or 6% lower against $513.6m in the same period last year, as all its business sectors posted lower PBT of between 9% and 24%, with the exception of the Electronics sector. The Electronics sector reported comparable PBT.

“For the third quarter, the Group reported year-on-year comparable Revenue and a decrease in PBT of 10%. For the first nine months of the year, the Group reported yearon- year comparable Revenue and a decrease in PBT of 6%.

The weak economic environment in Europe had impacted our aviation business in the third quarter. We will continue to review the aerospace sector’s European business.

The Group maintained a healthy order book of $13.2b at the end of the third quarter 2014. Our cash and cash equivalents including funds under management remained high at $1.6b, after the payment of an interim dividend of $125m in September 2014.

Barring unforeseen circumstances, the Group expects to achieve comparable Revenue, with a lower PBT for FY2014 when compared to FY2013.”

~ TAN Pheng Hock

President & CEO, ST Engineering

Business Highlights

The Group’s order book was $13.2b as at end September, of which it expects to deliverabout $1.6b in the last quarter of 2014.

During the third quarter, the Group continued to build up new business wins across the business sectors. The Aerospace sector announced contracts worth $450m for new orders that span the sector’s repertoire of capabilities covering airframe, component and engine maintenance, freighter conversion, cabin modification, engine wash and pilot training. The Electronics sector announced $513m of contracts for its rail electronics and intelligent transportation, satellite and broadband communications, as well as advanced electronics and ICT solutions. The Marine sector announced contracts to build two 130- foot Articulated Tug Barges tugs for Bouchard Transportation Co., Inc. in its US yards.

 

 

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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