ST Engineering profit up 9% to $92.8mln

Order book soared to $11.8bln at end of March, $3.2bln to be delivered within next months.

Singapore Technologies Engineering Ltd (ST Engineering) reported on Tuesday a 9% increase in net profit to $92.8m and a 3% increase in Group turnover to $1,361m for 1Q2010, compared to 1Q2009, according to ST Engineering report released Tuesday.

All four sectors reported stronger operating performance, resulting in Group's earnings before interest and tax (EBIT) growth of 25% to $110.9m. Compared to 1Q2009, the Electronics, Land Systems and Marine sectors reported higher turnover. While the Aerospace sector's turnover was marginally lower, profit before tax for the sector rose by 7% or $2.9m due to favourable sales mix and lower financial expenses. Commercial sales constituted 60% of the Group's first quarter turnover.

The Group's order book soared to a new high of $11.8b as at end March 2010. About $3.2b of this order book is expected to be delivered in the remaining nine months of 2010.

In the first quarter of 2010, the Aerospace sector secured a milestone US$750m contract from Jet Airways for a Maintenance-By-the-Hour (MBHT) programme to support its CFM56-7B engines. The sector also unveiled its latest hangar complex at Pudong International Airport in Shanghai, China. The 14,200 sqm hangar complex adds capacity for two narrow-body aircraft and three wide-body aircraft concurrently. It is able to accommodate an Airbus A380 aircraft.

The Electronics sector won a contract worth about RMB48m from Changchun Bombardier Railway Vehicles to provide Passenger Information Systems for the Singapore Downtown Line metro vehicles.

During Singapore Airshow 2010 in February, the Land Systems sector announced about $175m worth of contracts to provide driver training for the Singapore Armed Forces; to supply five units of 40mm L70 naval gun and an associated Integrated Logistics Support package to the Brazilian Navy; and to demilitarise ammunition for a country in Africa.

The Marine sector was awarded an undefinitised contract in excess of US$165m from the US Navy for a fourth Fast Missile Craft (FMC) for the Egyptian Navy. This most recent contract brings the total value for the FMC project to approximately US$807m.

Barring unforeseen circumstances, the Group expects to achieve a comparable turnover and higher PBT for 1H2010 vis-à-vis 1H2009. The Group expects, based on the order book and scheduled deliveries, to achieve higher turnover and PBT for FY2010 against FY2009.