STEng – BT
ST Electronics wins $100m SAF contract
Award involves supply of Advanced Combat Man System
SINGAPORE Technologies Engineering (ST Engg) has been awarded a contract worth over $100 million to supply advanced military technology to the Singapore Armed Forces (SAF).
The award is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the group for the current financial year, ST Engg said yesterday.
The project, awarded to its electronics arm ST Electronics, is expected to be completed by 2012.
The contract is to provide an Advanced Combat Man System (ACMS) to the SAF.
The ACMS is a 3rd Generation Networked Warrior system fully equipped with advanced C4I (Command, Control, Communications, Computers and Intelligence) and network capabilities.
The ACMS is a joint development effort that started in 1998 among the Defence Science and Technology Agency, the Singapore Armed Forces (SAF) and ST Electronics with the support of Singapore Technologies Kinetics.
‘With our strong electronics systems expertise, ST Electronics is committed to delivering solutions that aim to enhance the fighting effectiveness and capabilities of our soldiers,’ said Seah Moon Ming, deputy chief executive of ST Engineering and president of ST Electronics.
ST Engineering’s net profit for the first quarter ended March 31 fell 30.4 per cent to $85.2 million, from $122.5 million a year earlier largely due to its key aerospace unit’s pre-tax profit being halved to $39.8 million as freighter conversion re-deliveries dried up and sales fell.
CEO Tan Pheng Hock said then that the company’s order book was at an all-time high of $11.03 billion and that the company was holding $1.38 billion in cash and cash equivalents.
While aerospace earnings have weakened, defence orders have continued strongly.
ST Engineering sold $1.4 billion of weapons to foreign countries in 2008, including a landmark $330 million deal to supply armoured vehicles to the United Kingdom.
Earlier last month, it secured a $21 million contract to supply 40mm ammunition, again to the UK ministry of defence. Last year, it won two contracts worth $120 million to supply 40mm ammunition to the same customer.