ST Engineering Posts Higher Profit Before Tax For 1Q2014 Over 1Q2013 : Singapore Technologies Engineering Ltd

Singapore, 9 May 2014 – Singapore Technologies Engineering Ltd (ST Engineering) reported higher Profit before tax (PBT) of $167.9m on comparable revenue of $1.55b for its first quarter ended 31 March 2014 (1Q2014) over the same period last year. Net Profit of $137.2m was comparable to the corresponding period in the prior year.

At the business sector level, the Aerospace sector posted comparable revenue and PBT of $501m and $74.7m year-on-year. Revenue for the Electronics sector was 13% or $55m lower at $369m, while its PBT was comparable at $32.3m over 1Q2013. The Land Systems sector recorded revenue of $325m, 6% or $21m lower while its PBT was 10% or $2.2m lower at $18.8m year-on-year. Revenue for the Marine sector was 27% or $69m higher at $323m, and its PBT of $31.5m saw an increase of 7% or $1.9m compared to the same period last year.

“The Group ended the quarter with a record-high order book of $13.4b. The Group’s cash and cash equivalents including funds under management remained high at $2b after paying off $312m of bank loans. Barring unforeseen circumstances, the Group expects to achieve higher Revenue and PBT for FY2014 over FY2013.” ~ TAN Pheng Hock, President & CEO, ST Engineering.

Commercial sales accounted for 62% or $965m of Group’s 1Q2014 revenue. Order book grew to $13.4b from the $13.2b recorded in 31 December 2013. The Group expects to deliver $3.3b of orders in the remaining months of 2014.

Business Highlights
In the first quarter, the Group announced contract value of over $1b. The Aerospace sector won $460m worth of contracts, which included a two-year heavy maintenance contract from a major airline, an inaugural maintenance contract from Aircalin and an extension pilot-training contract from Xiamen Airlines. The Electronics sector disclosed $581m worth of contracts for its intelligent transportation, satellite and broadband communications, advanced electronics and Information Communications Technologies solutions.

In February, ST Engineering displayed its group-wide capabilities at the Singapore Airshow 2014, presenting latest technologies in three clusters of Aviation, Combat and Environmental solutions. During the show, the Group demonstrated to an international audience its abilities to respond to the needs and requirements of its customers, both defence and commercial, through an array of fielded products and proven solutions, as well as new concepts and designs.