ST Engineering profit up 34% to $124mln

Said figure was for the second quarter of the year while $2.2bln of company's $11.3bln order book is expected to be delivered in the second half of 2010.

Singapore Technologies Engineering Ltd (ST Engineering) on Tuesday reported increases in turnover, profit before tax (PBT) and net profit for 2Q2010 over 1Q2010. Turnover increased by 12% to $1,518m, while PBT grew 35% to $157.6m and net profit grew 34% to $124m compared to the first quarter this yea, according to a ST Engineering report.

Compared to second quarter of 2009, second quarter's turnover increased by 8%, PBT by 13% and net profit by 14%. All sectors reported higher PBT and PBT margin in second quarter of 2010 vis-à-vis second quarter of 2009, with the Land Systems sector registering the largest PBT increase of 97% due to higher project deliveries and specialty vehicle sales.

Commercial sales constituted 60% or $913m of the turnover for the second quarter. As at end June 2010, the Group's cash and cash equivalents and short-term investments totalled $1.72b. Advance payments from customers was $1.5b. Earnings per share was 4.11 cents, representing a 33% growth compared to first quarter of 2010.

The Group continued to maintain a strong order book of $11.3b as at 30 June 2010. About $2.2b of the order book is expected to be delivered in the second half of 2010. During the quarter, the Aerospace sector furthered its relationship with Spring Airlines with a contract award of about S$148m for component Maintenance-By-the-Hour (MBHT) services. It also secured several maintenance contracts with the RSAF. Adding to its rail project wins, the Electronics sector won a contract worth about S$4.6m to provide the Passenger Information Systems for the Rio De Janeiro metro vehicles. At the recent Eurosatory, the Land Systems sector unveiled the Bronco Fire Support Vehicle (FSV), a new Bronco variant that is capable of superior fire support and greatly enhances the warfighters' lethality and survivability. The Marine sector announced its biggest environmental engineering win to date with a S$66.5m contract to design and construct a waste management facility in Sungai Paku, Brunei.

"The Group reported increases in Turnover, PBT and Net Profit of 12%, 35% and 34% respectively in 2Q2010 over 1Q2010. Compared to 2Q2009, Turnover, PBT and Net Profit improved by 8%, 13% and 14% respectively. The Group's order book ended the quarter at a healthy $11.3 billion.

The Board of Directors has approved the payment of an interim ordinary dividend of 3 cents per share, payable on 9 September 2010.

Barring unforeseen circumstances, the Group expects to achieve higher turnover and PBT for FY2010 over FY2009.," said Tan Pheng Hock, President and CEO, ST Engineering.

First half of 2010 vs First half of 2009
Compared to first half of 2009, first half of 2010 turnover increased by 6% to $2,879m while PBT increased by 9% to $274.1m and net profit increased by 12% to $216.8m.

Interim Dividend
The Board of Directors approved an interim ordinary dividend of 3 cents per share for the financial year ending 31 December 2010. This is payable on 9 September 2010.

Prospects
Barring unforeseen circumstances, the Group expects to achieve higher turnover and PBT in second half of 2010 compared to first half of 2010; and higher turnover and PBT in FY2010 over FY2009.