ST Engineering's Q1 net profit down 15% as land systems, marine businesses decline

The ST Engineering pavilion at the Singapore Airshow 2016.
The ST Engineering pavilion at the Singapore Airshow 2016. ST PHOTO: ALPHONSUS CHERN

SINGAPORE - Singapore Technologies Engineering said on Friday its net profit for the first quarter ended March 31 slipped 15 per cent from the same period a year ago to $110.2 million as profits from its land systems and marine businesses declined.

Revenue however rose 8 per cent from the same period a year ago to $1.63 billion, with higher sales from the aerospace and electronics sectors.

" Our business operations, including shipbuilding, continue to face industry headwinds, the impact of slow-down in China and overall, an uncertain global economic outlook," ST Engineering chief executive officer Tan Pheng Hock said in a statement.

Notwithstanding the economic conditions, the quarter ended with an order book of $11.5 billion, he noted. The firm expects to deliver about $3 billion of these orders this year.

In the first quarter, ST Engineering announced $948 million worth of new contracts, comprising $443 million for the aerospace sector and $505 million for the electronics sector.

The firm continues to hold cash and cash equivalents, including funds under management, at a healthy level of $1.5 billion, Mr Tan added.

"Against a weakening global economic environment, the group adopts a cautious approach to its businesses," he said.

Earnings per share fell 15 per cent year on year, to 3.53 cents in the first quarter of this year.

Net asset value per share stood at 71.3 cents, up from 70.45 cents in the same period a year ago.