ST Engineering Q1 profits up 17.8% to $117.7m

It was supported by growth across all sectors except marine.

Singapore Technologies Engineering's (ST Engineering) profits whirred into growth in the first quarter of 2018 and went up 17.8% from $99.89m last year to $117.7m. Revenue also grew 9% from $1.51b to $1.65b.

According to its financial statement, all sectors except its marine sector and “others” delivered better performance.

Aerospace revenue and profits jumped 9% to $599m and 6% to $59.2m thanks to the improved performance of its Component/Engine Repair and Overhaul and Aircraft Maintenance & Modification business groups.

Electronics revenue climbed 22% to $605m whilst profits grew 23% to $40.3m due to higher project revenue recognition from all of its three business groups.

ST Engineering's land systems sector also recorded growth as revenue and profits grew 3% to $281m and 34% to $15.6m respectively. The company attributed this higher revenue recognition from its automotive business but offset by lower sales from munitions & weapon and service, trading, & other businesses.

Also read: ST Engineering Land Systems' Chinese unit files for bankruptcy

Meanwhile, marine revenue fell 16% to $150m due to lower revenue from shipbuilding and ship repairs. However, profits (+7% to $8.7m) were buoyed by a lower allowance for doubtful debts partly offset by weak industry conditions and US operations.

Operations in the "other" category incurred lower losses due mainly to contributions from an associate, Experia Events Pte. Ltd., the organiser of biennial Singapore Airshow 2018.