ST Engineering snags over $1.8 billion in new contracts for Q3

The company is on track to achieve its $180 million cost-savings target for FY2021. PHOTO: ST ENGINEERING

SINGAPORE (THE BUSINESS TIMES) - ST Engineering reported more than $1.8 billion in new contracts in the third quarter of the 2021 financial year, bringing its order book to over $18 billion.

In a bourse filing on Wednesday (Nov 10) before the market opened, the multi-disciplinary engineering company announced the breakdown in new contracts secured.

The commercial aerospace business secured $1 billion in new contracts, while the urban solutions and satellite communications business secured $382 million and the defence and public security business secured $413 million, not including wins due to customer confidentiality.

The company expects $1.9 billion worth of orders to be delivered in the remaining months of this year.

ST Engineering is also reporting continued recovery in its commercial aerospace business, with revenue for Q3 FY2021 up 27 per cent to $607 million, from $478 million a year ago. This marks two consecutive quarters of improved revenue for the business segment.

This commercial aerospace business has been lifted by international flights driving maintenance, repair and overhaul recovery, with capacity utilisation rate at 80 per cent in the third quarter of FY2021 compared with two-thirds in the first half of FY2021.

The passenger-to-freighter conversion programme demand continues to be strong, with the Airbus 330 aircraft slots booked through mid-2025 and Airbus 320/321 slots fully booked through mid-2024.

The company is on track to achieve its $180 million cost-savings target for FY2021 with the amount to be partially reinvested into growth areas. Regulatory reviews on the Transcore transaction are still in progress.

Shares of ST Engineering closed flat on Tuesday at $3.81.

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