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Results For The Quarter Ended 30 September 2016

For the third quarter ended 30 September 2016 3Q16
3Q15
Growth %
9M16
9M15
Growth %
Revenue ($m)
1,613
1,500
8
4,863
4,556
7
Earnings before interest and tax (EBIT) ($m)
82.0
120.5
(32)
316.3
381.0
(17)
Other income, net ($m)
10.7
6.8
58
57.4
32.9
74
Finance income/(costs), net ($m)
0.6
12.0
(95)
(14.8)
(9.1)
(263)
Profit before tax (PBT) ($m)
106.6
154.7
(31)
407.3
463.7
(12)
Profit attributable to shareholders ($m)
76.7
133.3
(42)
314.1
388.2
(19)
Earnings per share (cents)
2.47
4.29
(42)
10.12
12.48
(19)
  • Commercial sales constituted 63% or $1.0 billion of 3Q2016 revenue
  • Order book of $11.4 billion at end September 2016, of which about $1.4 billion is expected to be delivered in the remaining months of 2016
  • Cash and cash equivalents including funds under management totalled $1.3 billion
  • Advance payments from customers totalled $1.5 billion
  • One-off charge of $61.1m, net of non-controlling interests, for impairment of JHK’s assets and provision for closure costs

N.B.: All currencies are in Singapore dollars

Group 3Q2016 Unaudited Results and ST Engineering Results Presentation 3Q2016

Singapore, 10 November 2016 – Singapore Technologies Engineering Ltd (ST Engineering) today announced financial results for its third quarter ended 30 September 2016 (3Q2016). Group revenue for 3Q2016 at $1.6b was 8% higher when compared with $1.5b for the same period in 2015.  Profit before tax (PBT) of $106.6m was 31% lower compared with $154.7m, and Profit attributable to shareholders (Net Profit) of $76.7m was 42% lower against $133.3m for the same period last year.

3Q2016 versus 3Q2015

The Aerospace sector posted higher quarterly revenue of $563m, up 11% year-on-year from $506m, and PBT of $65.2m was comparable to the same quarter last year.  Quarterly revenue for the Electronics sector was $466m, up 9% year-on-year from $429m, and its PBT of $52.8m was 7% higher compared with $49.3m for the same quarter last year.   Compared with the same quarter the year before, the Land Systems sector posted comparable year-on-year revenue of $334m.  However, it reported a net loss before tax of $41.4m, as a result of a $61.1m one-off charge consisting of an impairment of asset carrying values and provision for closure costs for JHK, its road construction equipment business in China.   At the Marine sector, while revenue of $211m was comparable to the same quarter last year, its PBT of $38.7m was 143% higher than $15.9m a year ago as all its business groups reported better performance.

For 3Q2016, commercial sales contributed 63% or $1b of Group revenue.  Cash and cash equivalents including funds under management was $1.3b after the payment of an interim dividend of $155m in September 2016.

9M2016 versus 9M2015

Group revenue for 9M2016 grew 7% at $4.86b compared to $4.56b for the same nine-month period last year.  Group PBT at $407.3m was 12% lower from $463.7m a year ago, and Net Profit of $314.1m was 19% lower when compared with $388.2m for the same period in 2015.

For the nine-month period, the Aerospace sector posted higher revenue of $1.8b, up 19% compared with $1.51b a year ago, and comparable PBT of $214.5m against the same period last year.  The Electronics sector’s revenue of $1.37b was 14% higher when compared with $1.20b a year ago, and its PBT of $143.6m was 10% higher compared with $130.8m a year ago. The Land Systems sector’s revenue at $901m was 8% lower year-on-year compared with $982m, and resulting from the one-off charge for JHK, it posted a net loss before tax of $1.9m compared with PBT of $52.3m for the same period last year.  Revenue for the Marine sector was lower at $672m, down 9% from $738m and its PBT at $62.6m was down 9% from $68.9m a year ago.

“The Group reported higher Revenue but lower PBT for the third quarter as well as the first nine months of 2016, compared with the corresponding periods last year.  In 3Q2016, Land Systems sector took a one-off charge of $61.1m, net of non-controlling interests, for its Specialty Vehicle business in China.  Excluding the Specialty Vehicle business in China, comprising JHK and GJK which was divested in 2Q2016, Group PBT for 3Q2016 was higher compared to the same quarter last year.

Our operating environments remain challenged by uncertainties in the global economy. Notwithstanding this, the Electronics sector continues to do well, and delivered a strong performance year-to-date. The Group maintained a healthy order book of $11.4b at the end of 3Q2016, with cash and cash equivalents including funds under management of $1.3b after the payment of FY2016 interim dividend of $155m in August 2016.

Barring unforeseen circumstances, the Group expects FY2016 Revenue to be higher, while PBT is expected to be lower than that of FY2015.” 

~Vincent Chong, President & CEO, ST Engineering

Order Book and New contracts Announced in 3Q2016

The Group announced $1b worth of contracts in 3Q2016, maintaining a healthy order book of $11.4b.  It expects to deliver $1.4b of the order book in the remaining months of 2016.

The Aerospace sector secured new contracts worth $520m for various projects ranging from line and airframe maintenance to component repair and overhaul. The Electronics sector announced $480m worth of new contracts for Rail Electronics & Intelligent Transportation, Satellite & Broadband Communications, as well as Advanced Electronics & Information Communications Technologies solutions.

Notes to Editor

Jiangsu Huatong Kinetics Co., Ltd and Jiangsu Huaran Kinetics Co., Ltd (collectively JHK) manufactures road construction equipment.
Guizhou Jonyang Kinetics Co., Ltd (GJK) which manufactured excavators was divested in June 2016.

ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors.  Headquartered in Singapore, the Group reported revenue of $6.34b in FY2015 and ranks among the largest companies listed on the Singapore Exchange.  It is a component stock of the FTSE Straits Times Index, MSCI Singapore and the SGX Sustainability Leaders Index.  ST Engineering has about 23,000 employees worldwide, and over 100 subsidiaries and associated companies in 46 cities across 24 countries.  Please visit www.stengg.com for more information.

For further enquiries, please contact:
Lina Poa
Head, Corporate Communications
Tel: (65) 6722 1883    
Email: linapoa@stengg.com

Jackie Yu
AVP, Investor Relations
Tel: (65) 6722 1847
Email: jackieyu@stengg.com

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