SINGAPORE (Feb 23): ST Engineering reported a 5.6% increase in FY17 earnings to $511.9 million from $484.5 million in FY16.
Revenue for the full year ended Dec 2017 was 1.0% lower at $6.62 billion from $6.68 billion in the previous year.
Revenue from the aerospace sector was 2% higher y-o-y at $2.54 billion. Component/Engine Repair and Overhaul and Engineering & Materials Services business groups generated higher revenue, partially offset by decreased revenue from Aircraft Maintenance & Modification business group.
The electronics sector saw revenue increase by 12% y-o-y to $2.11 billion, due to higher project revenue recognition from all three business groups and increased sales of satellite communication products for Communication & Sensor Systems Group.
Revenue from land systems sector of $1.24 billion was 11% than FY16, driven by decreased revenue from Automotive and Munitions & Weapon business groups. Services, Trading and Others business group reported comparable revenue.
Revenue from the group’s marine sector was 24% lower y-o-y at $6377 million, due to decreases from all three business groups.
Revenue from the others segment was 13% higher y-o-y at $95 million, due mainly to improved contribution from Miltope.
Along with a 1.5% decrease in cost of sales to $5.30 billion, gross profit came in at $1.32 billion, 1.4% higher than $1.31 billion recorded in the same period last year.
Distribution and selling expenses was 7.0% lower at $169.5 million from $182.3 million a year ago, arose mainly from the absence of prior year's impairment of overdue receivables for the group’s Land Systems sector's China subsidiaries.
Other operating expenses declined by 28.0% y-o-y to $126.4 million from $175.6 million, due mainly to the absence of prior year's impairment of the group’s China subsidiaries' assets and related provision for closure costs..
Other income was 41.1% lower at $39.9 million compared to $67.8 million in the previous year, mainly from lower government grants and absence of gain on divestment of a subsidiary in land systems sector.
Share of results of associates and joint ventures dropped 22.6% to $49.3 million from $62.8 million a year ago.
As at Dec 31 2017, the group’s cash and cash equivalents stood at $997.6 million.
ST Engineering has declared a final dividend of 10 cents per share.
Vincent Chong, president and CEO of ST Engineering, says, “We will continue to strengthen our core businesses, drawing upon the strengths of each sector to offer innovative technologies in the areas of defence and smart city solutions (including, among others, cybersecurity, public security services, urban transportation and robotics) to our customers around the world. We expect that our performance will strengthen over the next few years.”
Shares in ST Engineering last traded at $3.38 on Thursday.