STEng – BT
ST Engg unit secures $160m SAF contracts
ST Engineering’s land systems arm ST Kinetics yesterday said that it has secured $160 million worth of contracts from the Singapore Armed Forces (SAF).
The two four-year contracts are for the maintenance of SAF’s vehicles and the preservation of SAF’s fleet of equipment. Both commence immediately and the preservation contract comes with an option for a two-year extension.
ST Engineering said that the contracts are not expected to have any material impact on its FY2010 financials.
ST Kinetics’ Q3 results, announced along with the rest of the ST Engineering group on Tuesday, showed a slight increase in net profit to $22.7 million.
Turnover grew 28 per cent to $373 million from $291 million in Q3 2009, mainly due to higher project deliveries from its automotive division as well as more than doubled sales from its services, trading & others division.
Automotive turnover rose 37 per cent to $270 million for the quarter and is still ST Kinetics’ main business. But an unfavourable product mix from the segment resulted in lower profits in Q3.
Its munitions & weapon business group saw revenue fall 11 per cent to $70 million and these lower sales, coupled with foreign exchange losses, drove profits down too.