ST Engg aerospace sector secures $590m in new contracts in Q3

ST Engineering's aerospace sector secured new contracts worth about $590 million in the third quarter, it announced yesterday.

The work is for services ranging from airframe, engine and component maintenance to engine wash.

They include multi-year contracts such as a four-year landing gear overhaul agreement from an Asian airline, a five-year extension to maintain thrust reversers and inlets of an European operator's A300-600 fleet and heavy maintenance deals from American freight operators.

ST Engineering's aerospace sector redelivered a total of 208 aircraft for airframe heavy maintenance and modification work in the three months to Sept 30, processed 11,992 components, 35 landing gears and 45 engines. It also conducted 2,644 engine washes.

The firm continued to expand its aftermarket services in nacelle systems - the part of the aircraft which houses engines - by setting up more maintenance, repair and overhaul capabilities. It is now developing aftermarket capabilities in new-generation flight control and nacelles systems used in aircraft platforms such as Boeing 737MAX and Boeing 777.

Its airframe maintenance portfolio in China was also expanded when its Guangzhou facility gained approval to carry out base maintenance for the Boeing 767 platform.

These developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share in this financial year.

ST Engineering's aerospace sector redelivered a total of 208 aircraft for airframe heavy maintenance and modification work in the three months to Sept 30, processed 11,992 components, 35 landing gears and 45 engines. It also conducted 2,644 engine washes.

ST Engineering shares closed down 0.87 per cent to $3.40 yesterday before the announcement.

A version of this article appeared in the print edition of The Straits Times on October 16, 2018, with the headline 'ST Engg aerospace sector secures $590m in new contracts in Q3'. Print Edition | Subscribe