ST Engineering net profit slips by 6.1% to $125m in 2Q

Blame it on lower shipbuilding revenue.

Unimpressive shipbuilding operations caused by operations locally and in the U.S. overshadowed developments in the Aerospace, Electronics, and Land Systems sectors of the integrated engineering group.

The marine operations woes resulted in a 27% drop in revenue to $254m.

"Against the same period last year, Aerospace sector recorded comparable revenue and PBT of $515m and $70.6m respectively. Revenue for the Electronics sector was 8% higher at $413m compared to $380m in the same quarter last year, while its PBT was comparable at $46.6m due mainly to less favourable sales mix and lower contribution from satellite communication product sales," a report from ST Engineering said.

"Though the Land Systems sector saw an 8% increase in revenue from $293m to $317m, its PBT was down 11% to $16.3m from $18.2m due mainly to higher allowance for inventory obsolescence and impairment of goodwill," the report added.