ST Engineering’s net profit jumps by 10% to $133.3m

Only to be spoiled by lackluster marine activities.

Singapore’s somber marine sector proved to be the thorn in the side of the surging integrated engineering group, negating a 21% growth in earnings for its budding electronics sector.

According to a statement by ST Engineering, revenue for its marine sector dropped by 39% yoy to $205m, while its PBT was down 51% to 15.9m due to weaker operating performance.

The weakness almost overshadowed its electronics sector which grew 21% yoy to $429m, with all business groups clicking on all cylinders.

“All three [Electronics] business groups recorded higher sales mainly due to higher value project milestone completions and increased satellite communication product sales. However, PBT was comparable at $49.3m against the same period last year as a result of less favourable sales mix and higher operating expenses,” the statement said.

Another bright spot is ST Engineering’s aerospace sector, posting a revenue of $506m which is up by 8% from a year ago due to higher engines output in the Component/Engine Repair & Overhaul business group.

However, this was offset by lower revenue from the Aircraft Maintenance & Modification business group.

“Year-on-year PBT was flat at $63.3m due to lower gross profit as a result of fewer airframe maintenance work partially offset by lower finance cost as well as the absence of impairment of an associate,” the statement added.

Meanwhile, its land systems sector failed to produce an upside, with its revenue down 11% to $319m, with lower contributions from its munitions and weapons group.