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SINGAPORE (Nov 14): ST Engineering reported a 5.3% increase in 3Q18 earnings to $134.6 million, compared to $127.8 million in 3Q17.
This brings 9M18 earnings to $369.8 million, 10.5% higher than $334.5 million in 9M17.
During the quarter, revenue rose 1% to $1.63 billion from $1.61 billion last year, mainly due to higher contributions from the group’s Aerospace and Electronics sector, but partially offset by declines from its Land Systems, Maine and Others sectors.
Gross profit for 3Q18 came in at $342.6 million, 1.0% higher than $339.2 million in the previous year despite higher cost of sales at $1.28 billion.
Distribution and selling expenses increased by 41.9% y-o-y to $49.2 million, while other operating expenses dropped by 35.0% y-o-y to $22.8 million.
During the quarter, the group registered finance income of $0.72 million, compared to finance costs of $3.49 million a year ago.
In 3Q18, all sectors across the group announced new contracts. Its Aerospace sector secured $590 million worth of contracts, Electronics sector clinched $435 million in new orders, Marine sector secured contracts worth $431 million, while the Land Systems sector secured numerous contracts too.
As at end-Sept, the group’s cash and cash equivalents stood at $351.2 million.
Vincent Chong, president and CEO of ST Engineering, says, “A key highlight of the third quarter was our proposed acquisition of MRAS . This business will help scale up our aerospace capabilities by moving us upstream into the OEM business of high-value components. We are excited by the role it will play in the growth of our Aerospace sector, and look forward to closing the transaction in the first quarter of 2019.
“We continue to be well placed to deliver long-term sustainable growth. Our innovative and differentiated Smart City solutions are gaining traction outside of our traditional markets as more cities embrace technology for development and modernisation.”
Shares in ST Engineering last traded 4 cents lower at $3.46 on Tuesday before the results announcement.