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ST Engineering Aerospace and Electronics Balance Up Weak Marine Sector

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ST Engineering announces its third quarter 2015 results on 6th November 2015. Revenue fell 3% to $1.50 billion from $1.55 billion as compared to the same quarter last financial year. Profit Before Tax (PBT) is expected to be lower than 2014.

ST Engineering 3Q 2015 Results

Revenue By Sector

Aerospace

The revenue for the Aerospace sector is $506 million, up 8% as compared to 3Q2014.

The was due to higher engines output in the Component/Engine Repair & Overhaul business group that
was partially offset by lower revenue from the Aircraft Maintenance & Modification business group.

Electronics

Revenue for the Electronics sector is $429 million, up 21%. Three business groups (Large-Scale Systems Group, Communication & Sensor Systems Group, Software Systems Group) recorded higher sales mainly due to higher value project milestone completions and increased satellite communication product sales.

Land Systems

Revenue for Land Systems sector fell 11% to $319 million. This was due to lower revenue from Munitions & Weapons business group.

Marine

Revenue for Marine sector fell 39% to $205 million. Marine industry remains tough due to weak oil prices and slowing demand.

ST Engineering 3Q 2015 Results By Sector

Outlook for 2015

(From ST Engineering presentation slides)

Aerospace

  • To develop new land gear capabilities
  • To secure A330-300P2F launch customer, in addition to EgyptAir Cargo contract secured for A330-200 P2F

Electronics

  • LSG: Sales recognition from the LTA’s Communications & Integrated Supervisory Control System and Bangkok MRT project
  • CSG: Sales recognition from a communication system project, the supply of telematics systems & satellite communication
  • SSG: Sales recognition from the milestone completions of a Healthcare Cloud project, simulator projects & managed services sales

Land Systems

  • Continue to pursue key programmes locally and overseas, deliver sales and improve operational efficiency and effectiveness

Marine

  • To keel lay for 3rd of eight LMV
  • To deliver TAGS-66 Oceanographic Survey Ship, 10th of ten OSVs, 1st of four PVs

Why I still like ST Engineering?

Read more on My Personal Analysis of ST Engineering.

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