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ST Engineering Posts Comparable PBT in 2Q2015 Vs 2Q2014

 

FINANCIAL HIGHLIGHTS for the quarter ended 30 June 2015

 

2015
2Q

2014
2Q

Growth
%

2015
1H

2014
1H

Growth
%

Revenue ($m)

     1,545

     1,586

(3)

     3,056

     3,138

(3)

Earnings before interest and tax (EBIT) ($m)

     150.4

     148.2

1

     260.4

     281.7

(8)

Other income, net ($m)

         5.4

         5.6

(4)

       26.2

       23.0

14

Finance (costs)/income, net ($m)

    (11.5)

         0.9

<-500

      (3.0)

      (3.2)

7

Profit before tax (PBT) ($m)

     158.5

     163.7

(3)

     309.0

     331.6

(7)

Profit attributable to shareholders ($m)

     125.0

     133.2

(6)

     255.0

     270.4

(6)

Earnings per share (cents)

       4.01

       4.28

(6)

       8.19

       8.68

(6)

 

  • Commercial sales constituted 64% or $1.0 billion of 2Q2015 revenue
  • Order book of $12.4 billion at end June 2015, of which about $2.3 billion is expected to be delivered in the remaining months of 2015
  • Cash and cash equivalents including funds under management totalled $1.5 billion
  • Advance payments from customers totalled $1.7 billion
  • Economic value added for first half of 2015 was $173.4 million
    (1H2014: $179.8 million)

N.B.: All currencies are in Singapore dollars

Group 2Q2015 Unaudited Results and ST Engineering Results Presentation 2Q2015

Singapore, 14 August 2015 – Singapore Technologies Engineering Ltd (ST Engineering) announced today financial results for its second quarter ended 30 June 2015 (2Q2015).  Group revenue was $1.55b compared to $1.59b in the same quarter last year, and profit before tax (PBT) was $158.5m compared to $163.7m.  Net profit after tax (Net Profit) was 6% down at $125.0m versus $133.2m.

Against the same period last year, Aerospace sector recorded comparable revenue and PBT of $515m and $70.6m respectively.  Revenue for the Electronics sector was 8% higher at $413m compared to $380m in the same quarter last year, while its PBT was comparable at $46.6m due mainly to less favourable sales mix and lower contribution from satellite communication product sales.  Though the Land Systems sector saw an 8% increase in revenue from $293m to $317m, its PBT was down 11% to $16.3m from $18.2m due mainly to higher allowance for inventory obsolescence and impairment of goodwill.  Against a 27% lower revenue of $254m from $348m, due mainly to lower Shipbuilding revenue from both Singapore and US operations, the Marine sector recorded higher PBT of $29.6m from $24.7m, up 20%.

Six Months Results: 1H2015 versus 1H2014
1H2015 Group revenue of $3.06b was comparable to that in the same period last year.  PBT at $309.0m was down 7% from $331.6m, and Net Profit dropped 6% to $255.0m from $270.4m.  Aerospace sector recorded comparable revenue and PBT of $1b and $142.0m respectively. Likewise, the Electronics sector posted comparable revenue and PBT of $769m and $81.5m respectively.  While revenue for the Land Systems sector grew 7% to $663m from $618m, its PBT was down 12% from $37.1m to $32.5m.  The Marine sector posted revenue of $534m, down 20% from $671m and PBT of $53.0m, down from $56.2m.

In 2Q2015, the Group reported comparable year-on-year Revenue and PBT. 1H2015 Revenue was comparable while PBT was lower compared with 1H2014. The Group secured more new orders to end the quarter with a healthy order book of $12.4b. Cash and cash equivalents including funds under management remained high at $1.5b after payment of the final FY2014 dividend of $342m.

The Board of Directors has approved the payment of an interim ordinary dividend of   5.0 cents per share, payable on 3 September 2015.  Barring unforeseen circumstances, the Group expects FY2015 Revenue and PBT to be comparable to that of FY2014.” ~ Lee Fook Sun, Deputy CEO, ST Engineering

Commercial sales accounted for 64% or $1b of Group’s 2Q2015 revenue.  Order book stood at $12.4b, compared to $12.2b as at end March 2015.  The Group expects to deliver $2.3b of orders in the remaining months of 2015.

New contracts announced in 2Q2015
For the second quarter, the Group announced about $1.34b worth of contracts.  Of these, $920m was from the Aerospace sector and $424m from the Electronics sector.

New wins for the Aerospace sector included an engine maintenance contract with Jet Airways; component Maintenance-By-the-Hour contract with Flybe; pilot training contract with Tigerair Singapore; heavy maintenance for an international airline and engine maintenance for a low cost carrier.   Contracts for the Electronics sector included rail electronics & intelligent transportation projects across China, Taiwan, India, the Middle East, as well as North and South America; satellite and broadband communications contracts from government, telecoms and enterprise users; and Intelligent Security Management System and automated metering solutions for government agencies and commercial businesses.

Interim Dividend
The interim ordinary dividend of 5.0 cents per ordinary share, as approved by the Board will be paid out to shareholders on 3 September 2015.

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 $6.54b in FY2014 and ranks among the largest companies listed on the Singapore Exchange.  It is a component stock of the FTSE Straits Times Index and MSCI Singapore.  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.
 

Media contact:
Lina Poa
SVP, Corporate Communications
ST Engineering
Tel: (65) 6722 1883 / 9696 5453        
Email: linapoa@stengg.com

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