ST Engineering profits up 10% to $117.5m in Q2

Its order book hit $13.4b, boosted by new orders in Smart City spaces.

ST Engineering's profits jumped 10% to $117.5m from $106.8m from the same period last year. According to its financial statement, revenue dipped 3% to $1.65b.

Commercial sales and defence sales accounted for 72% and 28% of revenue respectively. Order book hit $13.4b, contributed by new orders including those in the Smart City spaces. ST Engineering expects to deliver $2.7b of orders for the rest of 2018.

Revenue for the Aerospace sector grew 12% to $713m whilst its Net Profit grew 26% to $66.6m thanks to the component/engine repair & overhaul group, offset by lower contributions from aircraft maintenance and engineering & material services. It also gained from the sale of Airbus Helicopters Southeast Asia Private Limited.

Revenue for the Electronics sector fell 10% to $512m due to the absence of the one-time revenue increase, whilst its net profit leapt 22% to $46.7m. Revenue for the Land Systems sector was $270m, down 11% from $302m mainly due to the timing of project deliveries, whilst its net profit dipped 3% to $20.4m.

The Marine sector’s revenue fell by 9% to $148m. However, the sector recovered from a loss of $1.4m last year to a profit of $9.2m thanks to the better performance from both local and US operations.

ST Engineering announced new contracts worth about $1.27b in the second quarter. Of these, $510m was from the Aerospace sector for services ranging from heavy maintenance to engine wash and aircraft interior reconfiguration.

The Electronics secured about $764m worth of new contracts, mainly for its Smart City solutions in mobility, satellite communications, Internet of Things, public safety & security and cybersecurity, as well as defence solutions.

For the first half of 2018, profits jumped 14% to $235.2m whilst revenue inched up by 2% to $3.3b.

ST Engineering shareholders will receive the interim dividend of 5 cents per share on 28 August 2018.