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ST Engineering Reports Lower Profits for 1Q2016

 

 FINANCIAL HIGHLIGHTS for the first quarter ended 31 March 2016

 

2016
1Q

2015
1Q

Growth
%

Revenue ($m)

1,627

1,511

8

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

97.2

110.1

(12)

Other income, net ($m)

22.1

20.8

6

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

(11.5)

8.5

(234)

Profit before tax (PBT) ($m)

130.4

150.5

(13)

Profit attributable to shareholders ($m)

110.2

130.0

(15)

Earnings per share (cents)

3.53

4.17

(15)

 

  • Commercial sales constituted 71% or $1.15 billion of revenue
  • Order book of $11.5 billion at end March 2016, of which about $3.0 billion is expected to be delivered in the remaining months of 2016
  • Cash and cash equivalents including funds under management totalled
    $1.5 billion
  • Advance payments from customers totalled $1.6 billion

N.B.: All currencies are in Singapore dollars

Group 1Q2016 Unaudited Results and ST Engineering Results Presentation 1Q2016

Singapore, 13 May 2016 – Singapore Technologies Engineering Ltd (ST Engineering) today announced financial results for its first quarter ended 31 March 2016 (1Q2016). 

Group revenue for 1Q2016 was 8% higher at $1.63b compared to $1.51b the year before, with higher sales from the Aerospace and Electronics sectors.  Quarterly Profit before tax (PBT) for the Group was $130.4m, down 13% from $150.5m, and Quarterly net profit after tax (Net profit) for the Group was $110.2m, down 15% from $130.0m as profits from Land Systems and Marine sectors declined.

At the business level compared to the same period last year, revenue for the Aerospace sector was 27% higher at $622m from $489m, mainly driven by the contribution of a new subsidiary, Elbe Flugzeugwerke. PBT for the Aerospace sector remained comparable at $75.2m.  Arising from higher value project milestone completions, revenue for the Electronics sector increased 28% to $457m from $356m and its PBT up 13% to $39.6m from $34.9m.  The Land Systems sector recorded lower revenue for all its business groups, resulting in a 18% drop in revenue to $284m from $346m, and 28% drop in PBT to $11.6m from $16.2m.  In the Marine sector, weaker shipbuilding performance in Singapore and US operations resulted in revenue of $213m, 24% lower compared to $280m, and PBT of $3.4m, 85% down from $23.4m.

For the first quarter of 2016, the Group reported higher Revenue, but lower PBT compared to the same quarter last year. Our business operations, including shipbuilding, continue to face industry headwinds, the impact of slow-down in China and overall, an uncertain global economic outlook.

Notwithstanding the economic conditions, the quarter ended with an order book of $11.5b, and we continue to hold cash and cash equivalents, including funds under management, at a healthy level of $1.5b.

Against a weakening global economic environment, the Group adopts a cautious approach to its businesses.  Barring unforeseen circumstances, the Group expects FY2016 Revenue to be higher, and PBT to be comparable to FY2015.  We continue to monitor the situation closely and will provide an update at mid-year.” ~Tan Pheng Hock, President & CEO, ST Engineering

Business Highlights And New Contracts in 1Q2016

Commercial business accounted for 71% or $1.15b of Group revenue in 1Q2016.  Order book was $11.5b at the end of March 2016, of which the Group expects to deliver about $3.0b in the remaining months of 2016.

In the first quarter, the Group announced $948m worth of new contracts, comprising $443m for the Aerospace sector and $505m for the Electronics sector.  Contracts for the Aerospace sector were for various projects, including line and heavy maintenance, cabin interior modifications, component and landing gear support, pilot training and engine wash services.  The Electronics sector continued to secure projects for Rail Electronics & Intelligent Transportation, Satellite & Broadband communications, as well as Advanced Electronics and ICT solutions which included contracts to deliver its Trainborne Communications System for the Riyadh Metro in Saudi Arabia, and to deploy its smart lighting solution across the Borough of Southend-on-Sea in the United Kingdom.

In February during the Singapore Airshow 2016, the Group exhibited more than 100 products, services and solutions - new and proven – organised into Aviation, Smart Combat and Smart City clusters.  The exhibits showcased broad-based capabilities which position the Group well to capture opportunities driven by megatrends impacting global aerospace, defence and security world, as well as the rapid transformation of cities such as Singapore over the next decade.  

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 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    
Email: linapoa@stengg.com



 

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