Singapore Technologies Engineering posts 10% fall in Q2 earnings

SINGAPORE - Higher operating costs and weaknesses in some of its business divisions led Singapore Technologies (ST) Engineering to post lower earnings for its second quarter this year.

The Singapore-listed engineering group said on Wednesday that net profit for the three months to June 30 was $133.2 million, down 10 per cent from a year ago.

Revenue also dipped 0.7 per cent in the period to $1.59 billion, as a slide in land systems revenue dragged down growth in the aerospace, electronics and marine divisions.

All divisions except electronics also posted lower pre-tax profits, the group said.

The group's order book stood at $13.4 billion as at end-June, of which about $2.6 billion worth of orders are expected to be delivered in the second half of this year.

ST Engineering will pay an interim dividend of four cents a share on Sep 4.