ST Engineering’s net profit jumps 7% to $527.5m in 2011

Except for its Marine segment, which suffered from a $164m loss, all segments recorder higher revenue in 4Q11.

Singapore Technologies Engineering Ltd reported revenue for financial year ended 2011 of $5.99b, compared with $5.98b a year ago. Profit before tax registered a 4% growth to $655.2m, while net profit grew steadily by 7% to $527.5m.

In the fourth quarter, Group’s revenue of $1.54b was higher than that achieved in 3Q2011 by 11% or $150m. Except for Marine sector, all sectors recorded higher revenue compared to 3Q2011. Marine sector’s revenue of $91m was 64% or $164m lower, largely due to the reversal of Shipbuilding revenue in 4Q2011 following the Ropax contract termination.

Group’s PBT of $184.3m for 4Q2011 was 11% or $18.4m higher than that achieved in 3Q2011. Land Systems and Marine sectors reported higher PBT, while Aerospace and Electronics sectors recorded lower PBT.

Compared to 4Q2010, 4Q2011 revenue and PBT were comparable while net profit was higher by 6%.

Higher EPS and Higher Dividend
Earnings per share grew by 7% to 17.28 cents and economic value added increased by 10% to $405m. Return on equity remained high at 29.9%. Cash and cash equivalents and short term investments totalled $1.77b and advance payments from customers stood at $1.27b.

The ST Engineering Board of Directors is proposing a final dividend of 12.50 cents per share, consisting of an Ordinary Dividend of 4 cents per share and a Special Dividend of 8.50 cents per share. Total dividend amounts to 15.50 cents per share, including the Interim Dividend of 3 cents per share paid out in September 2011. This translates to a dividend yield of 5.07%, computed using the average closing share price of the last trading day of 2011 and 2010.