ST Engineering posts 12.3% drop in Q2 earnings

ST Engineering  posted a net profit of $111.5 million for the three months ended June 30.
ST Engineering posted a net profit of $111.5 million for the three months ended June 30.ST PHOTO: KUA CHEE SIONG

SINGAPORE - Weakness in the marine sector proved a drag on Singapore Technologies (ST) Engineering's second-quarter earnings, which fell 12.3 per cent.

The integrated defence and engineering group on Friday (Aug 11) posted a net profit of $111.5 million for the three months ended June 30.

The marine division suffered an $8.1 million loss against a previous $20.4 million pre-tax profit, owing mainly to "weak industry conditions and its US operations". But the group's diverse business portfolio mitigated the impact of the weak marine sector, ST Engineering said.

The drop in earnings came even as revenue climbed 8.2 per cent to $1.76 billion, propped up largely by the electronics sector which had a 40 per cent rise, and "others", which surged 138 per cent, thanks mainly to Miltope - which makes militarised and rugged computer equipment, and commercial computer-related products for the aerospace market.

Net profit for the half year ended June 30 shrank 9.5 per cent to $215 million, while revenue inched up 1.4 per cent to $3.3 billion.

Despite the poorer results, ST Engineering has kept interim dividend steady at five cents a share, unchanged from previously.