Friday, November 6, 2015

ST Engineering posts 10% earnings growth for 3QFY2015

Singapore Technologies Engineering posted a 10% growth in earnings to $133.3 million for 3QFY2015.

Revenue declined 3% to $1.5 billion for the quarter to September, owing to the revenue declines at its land systems and marine sectors, which were partially offset by revenue growth at its aerospace and electronics segments.

Revenue at the aerospace sector rose 8% to $506 million, driven by higher engines output in its component and engine repair & overhaul business group. This was, however, offset by lower revenue from the aircraft maintenance & modification business group.

Revenue for the electronics sector grew 21% to $429 million as all of its three business groups recorded higher sales mainly due to higher value project milestone completions and increased satellite communication product sales.

Land systems sector reported 11% earnings decline to $319 million, down 11% year-on-year due to lower revenue from Munitions & Weapons business group, while marine sector revenue fell 39% to $205 million due to a weaker performance for its ship building and ship repair activities from both its local and US operations.

The group’s order book stands at $12.2 billion, with about $1.4billion expected to be delivered by year-end.

STE says it continues to face challenges in its aerospace sector’s maintenance, repair and overhaul (MRO) business and its marine sector’s shipbuilding business, where demand remains weak. The group expects revenue for FY2015 to remain stable, while pretax profit will be lower than FY2014 levels.

The group did not declare any dividends for the current financial period.

ST Engineering’s share closed unchanged at $3.30 on Thursday.

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