ST Engineering Q2 profit drops 6%

SINGAPORE - ST Engineering on Friday reported a 6.1 per cent decline in second-quarter net profit to $125 million from $133.2 million in the year-ago period, as shipbuilding and engineering revenue fell.

Revenue was 2.6 per cent lower year-on-year at $1.55 billion as its marine sector posted lower revenues, while earnings per share fell to 4.01 cents from 4.28 cents in the a year ago.

Revenue from its marine sector fell 27 per cent to $254 million due to lower shipbuilding revenue from both local and US operations as well as lower engineering revenue.

For the half year, net profit slipped 5.7 per cent to $254.96 million, while revenue dipped 2.6 per cent to $3.06 billion.

The group's order book stood at $12.4 billion at end-June, compared with $12.2 billion as at end-March. It expects to deliver $2.3 billion worth of orders in the remining months this year.

"Barring unforeseen circumstances, the group expects FY15 revenue and profit before tax to be comparable to FY14," said Lee Fook Sun, deputy chief executive officer of ST Engineering.

The board has approved an interim dividend of five cents per share, payable on Sept 3.