STEng – CNA

ST Engineering’s Q2 net profit down 9.4% to S$108.7m

ST Engineering has posted a 9.4 per cent drop in second quarter net earnings to S$108.7 million from a year ago on rising costs and operating expenses.

Revenue for the three months to June rose 8 per cent to S$1.4 billion. But this failed to offset the rise in costs and expenses during the quarter.

Compared to a year ago, cost of sales rose 11.4 per cent while operating expenses rose 8.2 per cent.

Nonetheless, the company maintained a strong order book of S$10.7 billion as of June. About S$2 billion of these orders are expected to be delivered in the second half of the year.

Barring unforeseen circumstances, ST Engineering expects to achieve higher turnover and profit before tax in the second half of the financial year, compared to the first half.

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