ST Engineering's profit slid 6% to $590.6m

But the group still expects better profit turnout by 2017.

ST Engineering reported its full year financial results for the period ended 31 December 2016 (FY2016), with a 6% increase in group revenue to $6.68b from $6.34b a year ago and lower profits resulting from the one-off charge consisting of an impairment of asset carrying values and provision for closure costs for JHK, the Land Systems sector’s road construction equipment business in China. 

Profit before tax (PBT) dropped 6% to $590.6m from $630.3m, and net profit attributable to shareholders was 8% lower at $484.5m from $529.0m in the prior year.

Comparing FY2016 against FY2015 at the business sectors, revenue for the Aerospace sector was 19% higher at $2.48b from $2.09b posted a year ago, mainly driven by the contribution of its new subsidiary, Elbe Flugzeugwerke. Its PBT was $300.3m compared with $290.6m the year before.

The Electronics sector posted higher revenue of $1.88b, up 10% from $1.71b, and a 9% increase in PBT to $207.8m from $191.0m a year ago.

Revenue for the Land Systems sector was down 7% year-on-year to $1.30b from $1.40b, and its PBT declined 66% to $22.2m from $65.0m the year before, a result of the one-off charge for JHK.

Weaker shipbuilding performance in Singapore and US operations resulted in lower revenue and PBT for the Marine sector, with its revenue down 12% to $841m from $958m and its PBT down 15% to $75.1m from $88.3m a year ago.

For 4Q2016, the Group posted comparable Revenue with a higher PBT compared to the same quarter last year. At the end of 2016, the order book showed a healthy level of $11.6b. The Group’s cash and cash equivalents including funds under management at the end of FY2016 was at $1.4b.

Barring unforeseen circumstances, the Group expects FY2017 Revenue to be comparable, while PBT is expected to be higher than that of FY2016