Singapore Technologies Engineering (ST Engineering), owner of maintenance, repair and overhaul company ST Aerospace, in May posted a 9 percent increase in its first-quarter net profit to S$92.8 million. Group sales rose 3 percent to $1.361 billion, compared with the same period a year earlier.
All four of the company’s business sectors reported stronger operating performance, resulting in group earnings before interest and tax (EBIT) growth of 25 percent to S$110.9 million.
Sales grew in the company’s Electronics, Land Systems and Marine units, while the Aerospace sector's revenue was marginally lower. Even so, profit before tax for the Aerospace business rose by 7 percent, or S$2.9 million, due to a favourable sales mix and lower financial expenses.
Commercial sales accounted for 60 percent of the group turnover, while the group's order book soared to a new high of S$11.8 billion as of the end of March. About S$3.2 billion of this order book is expected to be delivered in the remaining nine months of 2010.
“Barring unforeseen circumstances, the Group expects to achieve a higher turnover and [profit before tax] for FY2010 compared to FY2009," says TAN Pheng Hock, ST Engineering’s president and chief executive.
During the first quarter, the Aerospace sector secured a milestone US$750 million contract from India’s Jet Airways for a maintenance-by-the-hour (MBH) programme to support its CFM International CFM56-7B engines. The business unit also unveiled its latest hangar complex at Pudong International Airport in Shanghai, China.
The new, 14,200-square metre hangar complex adds capacity for two narrowbody aircraft and three widebodies simultaneously, and is able to accommodate an Airbus A380 aircraft