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ST Engineering reports 11% higher 1Q earnings of $117.7 mil; order book hits record $14.1 bil

PC Lee
PC Lee • 3 min read
ST Engineering reports 11% higher 1Q earnings of $117.7 mil; order book hits record $14.1 bil
SINGAPORE (May 15): ST Engineering, the technology, defence and engineering group, reported 1Q19 earnings of $131.1 million, 11% higher from earnings of $117.7 million a year ago in 1Q18.
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SINGAPORE (May 15): ST Engineering, the technology, defence and engineering group, reported 1Q19 earnings of $131.1 million, 11% higher from earnings of $117.7 million a year ago in 1Q18.

Basic earnings per share for 1Q19 stood at 4.20 cents compared to 3.78 cents a year ago.

Group revenue increased 5% to $1.73 billion from $1.65 billion while profit before tax (PBT) of $159.9 million was 11% higher from $144 million a year ago.

At the sector level, revenue for the Aerospace sector increased 4% y-o-y to $622 million while net profit rose 6% y-o-y to $62.7 million.

Revenue for the electronics sector was $563 million, down 7% from its high base a year ago in 1Q18 which was a strong quarter with 22% y-o-y growth. Nevertheless, net profit was up 8% y-o-y to $43.4 million due to favourable sales mix.

Revenue for the land systems sector was up 34% to $377 million, driven by broad-based growth across its business groups while net profit dropped 3% y-o-y to $15.2 million mainly due to the absence of a favourable tax finalisation adjustment.

Revenue for the marine sector stood flat at $149 million while net profit grew 38% y-o-y to $12 million largely due to improved US shipbuilding performance.

As at March 31, the group’s order book stood at a record $14.1 billion, of which $4.2 billion is expected to be delivered in the remaining months of 2019.

The group announced a combined value of $2.1 billion new contracts for the aerospace and electronics sectors. $1.3 billion was from the aerospace sector for services ranging from a 10-year heavy maintenance support for a major North American operator’s entire fleet of A300s and Boeing 757 and component support for new African and European airline customers.

The electronics sector received $818 million worth of contracts from global customers for its mobility, satellite communications, Internet of Things, cybersecurity, public safety and security, and defence solutions.

In addition to the above new wins, the land systems sector hit a major milestone with its first seaport contract to supply 80 automated guided vehicles to Singapore’s container port operator, PSA Corporation.

The marine sector was selected by Naval Sea Systems Command for a Phase One Preliminary/Contract design for the National Oceanic and Atmospheric Administration AGOR Variant, and the US Navy exercised the option for the first of four Auxiliary Personnel Lighter (APL(S)) berthing barges, bringing the total number of APL(S) berthing barges to be constructed at the group’s US shipyard to three.

Net asset value per share for 1Q19 stood at 74.34 cents versus 74.57 cents a year ago.

Shares in ST Engineering closed 2 cents lower at $4.02 on Tuesday.

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