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SINGAPORE (May 12): ST Engineering announced 1Q17 earnings of $103.4 mil, 6% lower from $110.2 million reported in the previous year on lower revenue.

Group revenue for the quarter was $1.5 billion, 5% down from $1.6 billion a year ago due to revenue declines across its aerospace, land systems and marine sectors.

The aerospace business declined 12% to $549 million over the quarter as its aircraft maintenance & modification, as well as component/engine repair and overhaul business groups recorded lower revenue.

Land systems revenue was 14% lower at $273 million mainly due to revenue declines across its automotive and munitions & weapon business groups.

The marine sector recorded 16% lower revenue of $179 million as a result of lower revenue from all of its business groups, while the revenue decline under ‘others’ was due mainly due to lower income from VT Miltope, the group’s US subsidiary.  

The electronics sector, however, proved an exception with revenue increasing 14% to $523 million from $475 million a year ago.

ST Electronics ended the first quarter with an order book of $13.3 billion, of which it expects to deliver $3 billion of orders in the remaining months of 2017.

Cash and cash equivalents including funds under management was $1.7 billion.

“Amidst global uncertainties, the group adopts a cautious position at this time and maintains its outlook that FY17 revenue will be comparable to, and profit before tax (PBT) will be higher than that of FY16. We will provide an update at mid-year,” says Vincent Chong, president and CEO of the group.

Shares of ST Engineering closed 5 cents lower at $3.80 on Thursday.