ST Engineering profits up 3.4% to $139.14m in Q3

Contributions from MRAS boosted profits in the Aerospace sector.

Singapore Technologies Engineering’s (ST Engineering) net profit climbed 3.4% YoY to $139.14m in Q3, the company announced. Revenue jumped 27.2% to $2.07b over the same period.

In the first nine months of 2019, its profits rose 10.4% to $408.42m, whilst revenue grew 13.3% to $5.58b.

The increase in net profit was attributed to contributions from the Aerospace sector and others. The former saw a 17% rise to $65m mainly from new income stream contribution from Middle River Aerostructure Systems (MRAS), net favourable impact from end-of-programme reviews and recognition of tax credit.

However, it was partially offset by the absence of gain from portfolio rationalisation, timing differences in project revenue recognition, and impairment of assets.

The net profit of the Marine sector plummeted 73% to $3.4m mainly from provision for amount payable to a customer under an arbitration outcome, although partially offset by higher revenue from Engineering business group.

Profits from the Electronics sector also fell 7% to $51.5m largely due to increased investments in new growth areas, whilst Land Systems sector dropped 14% to $15.1m mainly from absence of prior year tax credit and higher operating expenses from investing in robotics.

The group clinched a total of $1.8b worth of new contracts for the quarter. As of 30 September, its order book stood at $15.9b, with $2.2b to be delivered by end-2019. 

Photo from ST Engineering website