STEng – BT

ST Engg’s Q1 profit jumps 20% to $111m

Revenue rises 15% to $1.57b; EPS up 19% to 3.65 cents

SINGAPORE Technologies Engineering (ST Engineering) yesterday posted a 20 per cent jump in first-quarter net profit to $111.1 million, from $92.8 million a year ago.

The net profit increase came on the back of a 15 per cent rise in the conglomerate’s revenue for the three months ended March 31.

Group revenue rose to $1.57 billion from $1.36 billion a year earlier, lifted by its electronics and land systems sectors, while its aerospace arm posted the strongest profit growth.

Earnings per share grew 19 per cent to 3.65 cents, while net asset value rose to 57.53 cents as at end-March, from 55.24 cents a year earlier.

For the first quarter, commercial sales came to $892 million, or 57 per cent of total turnover for the group, which derives significant revenues from supplying equipment to the Republic of Singapore Armed Forces and other military customers.

The land systems arm saw a 35 per cent jump in revenue to $358 million, thanks to higher project deliveries from its automotive business segment.

Double-digit revenue growth was also seen in the electronics arm, whose turnover rose 24 per cent to $444 million, thanks to milestone completions of the Circle Line and half-height platform screen door projects for the Land Transport Authority. Both sectors thus saw double-digit growth in Q1 net profit too.

While revenue for the aerospace arm was flat from a year ago, it still managed 33 per cent jump in pre-tax profit, thanks to a favourable sales mix and foreign exchange gains. As for the smallest of the four, the marine sector, revenue edged up 6 per cent on increased shiprepair activity but net profit dipped.

Overall, the group’s cash and cash equivalents and short-term investments totalled $1.85 billion, while advance payments from customers stood at $1.6 billion.

ST Engineering also secured new orders in the quarter, including aerospace maintenance and shipbuilding contracts, ending with an order book of $11.3 billion. Of this, it expects $3 billion to be delivered in the rest of 2011.

In the stock market yesterday, ST Engineering shares closed one cent higher at $3.08.

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