ST Engineering Q2 profit up 10% to $117.5m

Singapore Technologies Engineering’s net profit has seen a rise in its second quarter despite a small drop in revenue for the period.
Singapore Technologies Engineering’s net profit has seen a rise in its second quarter despite a small drop in revenue for the period.PHOTO: ST FILE

SINGAPORE - Singapore Technologies Engineering (ST Engineering) on Wednesday reported a rise in its second-quarter profit despite a small drop in revenue for the period.

Net profit for the three months to June 30 rose 10 per cent to $117.5 million, notwithstanding a 3.3 per cent drop in revenue to $1.65 billion.

The group attributed the fall in revenue to the absence of a one-time revenue increase for its electronics sector in the corresponding period last year from the modification of revenue recognition estimates from long-term contracts.

Earnings per share clocked in at 3.77 cents, up from 3.43 cents a year ago.

The group declared an unchanged interim dividend of five cents per share, which shareholders will receive on Aug 28.

On a sectoral basis, ST Engineering's aerospace sector posted a 26 per cent rise in net profit to $66.6 million on the back of a 12 per cent increase in revenue to $713 million.

Earnings for its electronics division gained 22 per cent to $46.7 million as revenue dipped by 10 per cent to $512 million.

For its land systems sector, net profit was 3 per cent lower at $20.4 million, on the back of an 11 per cent fall in revenue to $270 million.

The marine sector's net profit was $9.2 million, reversing from a loss of $1.4 million. Revenue fell 9 per cent to $148 million.

ST Engineering shares ended the day four cents higher at $3.45.