ST Engineering sees 6% drop in Q1 profit

 The ST Engineering pavilion at the indoor exhibition of the Singapore Airshow 2016.
The ST Engineering pavilion at the indoor exhibition of the Singapore Airshow 2016.PHOTO: ST FILE

SINGAPORE - Singapore Technologies (ST) Engineering posted on Friday (May 12) a 6.1 per cent drop in net profit to S$103.4 million for the first quarter ended March 31, 2017, from S$110.2 million a year ago.

This was on the back of a 5.4 per cent drop in revenue to S$1.54 billion due to lower contributions from its aerospace, land systems and marine divisions, partially offset by higher turnover from its electronics division.

ST Engineering said it continued to secure orders in the quarter and concluded it with a strong order book of S$13.3 billion. Cash and cash equivalents including funds under management remain at a healthy level of S$1.7 billion, it said.

It also said it expects revenue and profit before tax (PBT) for the fiscal first half to be comparable to that in the year-ago period.

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"For FY2017, the group's revenue is expected to be comparable to, while PBT is expected to be higher than that of FY2016," it added.