ST Engineering Profits from Land Systems and Marine Sectors Declined

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Singapore Technologies Engineering Ltd (ST Engineering) announces its 1Q2016 financial results on 13th May 2016. Revenue was 8% higher in 1Q2016 as compared with 1Q2015 due to higher sales from Aerospace and Electronics sectors. However, net profit after tax (Net profit) for the Group was $110.2m, down 15% from $130.0m as profits from Land Systems and Marine sectors declined. Earning per share fell 15% from 4.17 cents to 3.53 cents.

Revenue from Aerospace and Electronics sector are 27% and 28% higher respectively. Revenue for Land Systems and Marine sector decline by 18% and 24% respectively. Revenue from Marine sector remains weak due to lower demand for ship building from local and U.S. operations.

Order book was $11.5b at the end of March 2016, of which the Group expects to deliver about $3.0b in the remaining months of 2016.

FINANCIAL HIGHLIGHTS
For the first quarter ended
31 March 2016
2016
1Q
2015
1Q
Growth
%
Revenue ($m)1,6271,5118
Earnings before interest and tax (EBIT) ($m)97.2110.1(12)
Other income, net ($m)22.120.86
Finance (costs)/income, net ($m)(11.5)8.5(234)
Profit before tax (PBT) ($m)130.4150.5(13)
Profit attributable to shareholders ($m)110.2130.0(15)
Earnings per share (cents)3.534.17(15)

The stock price for ST Engineering closed at S$3.08 today.

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