Singapore Technologies Engineering (ST Engineering) reported a 42.5 per cent fall in third-quarter earnings to $76.7 million after a hefty one-off charge.
Revenue for the three months to Sept 30 rose 7.5 per cent to $1.61 billion over the same period a year earlier. But the bottom line was hurt by a one-off charge of $61.1 million for its speciality vehicle business in China. The one-off charge consists of an impairment of asset carrying values and provision for closure costs for JHK, its road construction equipment business in China. Excluding this business, group pre-tax profit for the third quarter was higher than a year earlier.
Its aerospace division posted revenue of $563 million, up 11 per cent, while its pre-tax profit of $65.2 million was comparable with the same quarter last year.
Turnover for the electronics division was 9 per cent higher at $466 million, with a 7 per cent rise in pre-tax profit to $52.8 million.
The land systems unit posted comparable year-on-year revenue of $334 million. But it reported a net loss before tax of $41.4 million due to the $61.1 million one-off charge.
AT A GLANCE
NET PROFIT: $76.7 million (-42.5%)
REVENUE: $1.61 billion (+7.5%)
At the marine division, while the revenue of $211 million was comparable to last year's, its pre-tax profit of $38.7 million was 143 per cent higher as all its business groups reported better performance.
Earnings per share came in at 2.47 cents, down from 4.29 cents a year earlier, while net asset value per share was 63.39 cents, a touch lower than the 65.23 cents as of Sept 30 last year.
The firm said its operating environments remain challenged by uncertainties in the global economy, although the electronics sector continues to do well. It said it had a healthy order book of $11.4 billion as of Sept 30, with cash and cash equivalents including funds under management of $1.3 billion after the payment of an interim dividend of $155 million in September. ST Engineering shares yesterday rose four cents to $3.11.