ST Engineering profits slide 10% on lacklustre aviation business

Europe’s weak economy is not helping.

ST Engineering’s aerospace sector registered lower revenue, offsetting higher revenue recorded in the marine sector.

According to a media release, Singapore Technologies Engineering Ltd (ST Engineering) today reported that financial results for its third quarter ended 30 September 2014 (3Q2014) came in with lower profit before tax (PBT) and net profit after tax (Net profit) on the back of a comparable revenue of $1.55b against the same period last year. Quarterly PBT was $151.7m, down 10% from $168m, and Quarterly Net profit was $121.3m, down 8% from $131.4m.

Group revenue was flat even though the Marine sector recorded higher revenue of $336m, which was largely offset by lower revenue recorded by the Aerospace sector. Revenue for the Aerospace sector was $470m, down 8% from $510m mainly attributable to the Component/Engine Repair & Overhaul business group which generated lower revenue. 

The weaker performance in the Aerospace sector’s European operations impacted its PBT, which saw a 19% drop to $63.5m from $78.5m a year ago. This in turn impacted the Group PBT even though the Electronics sector enjoyed a 9% increase in PBT to $47m from $43m, and that both the Land Systems and Marine sectors reported comparable PBT against the same period last year.