STEng – BT

ST Engg net profit rises 8.9% to $92.8 million in Q1

SINGAPORE Technologies Engineering (ST Engg) yesterday reported first-quarter net profit rose 8.9 per cent to $92.8 million, from $85.2 million a year ago.

This was on the back of a 3.2 per cent increase in sales, to $1.36 billion from $1.32 billion last year. The company, which is in defence, aerospace and marine engineering, said it had a record order book of $11.8 billion as at end-March, with some $3.2 billion or 27 per cent of that expected to be delivered this year.

All the group’s arms reported stronger operating profit, resulting in earnings before interest and tax growth of 25 per cent to $110.9 million, ST Engg said. Earnings per share were 3.08 cents for the quarter, up from 2.84 cents a year ago. ‘Barring unforeseen circumstances, the group expects to achieve higher turnover and profit before tax for FY2010 compared to FY2009,’ said president and chief executive officer Tan Pheng Hock.

While the group’s aerospace division reported marginally lower sales, pre-tax profit rose 7 per cent due to a favourable sales mix and lower financial expenses from recognition of fair value of an interest rate swap, ST Engg said. The electronics arm posted 8 per cent or 25 per cent higher sales on the back of milestone completions of the Circle Line MRT project as well as rail projects in Guangzhou and Taiwan and 29 per cent higher pre-tax profit, partially offset by lower income from the Jobs Credit Scheme.

Sales in land systems gained 7 per cent or $18 million, while marine posted 9 per cent or $22 million more in sales from higher engine repair activity offset by lower ship repair turnover.

However, quarter-on-quarter, all four divisions recorded a total of some 21 per cent or $30.3 million less in pre-tax profit, largely due to lower quarter-on-quarter sales figures.

ST Engg shares closed unchanged yesterday at $3.13.

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