Singapore Technologies Engineering Ltd (ST Engineering) announced today that the Group posted quarterly revenue of $1.59b for the second quarter ended 30 June 2014 (2Q2014), which is comparable with the prior year s revenue in the same period. The Land Systems sector saw lower revenue due to fewer deliveries in its Automotive business group in the second quarter. The other three sectors - Aerospace, Electronics and Marine registered growth of between 6% and 12% year-on-year.
In 2Q2014, all sectors except for the Electronics sector, recorded lower profit before tax (PBT) resulting in a 12% drop in Group PBT to $163.7m from $186.9m in the same period last year. PBT for the Aerospace sector was 9% lower at $72.9m, Land Systems sector was 46% lower at $18.2m and Marine sector was 31% lower at $24.7m. PBT for the Electronics sector was comparable at $48.2m. Net profit after tax (Net Profit) in 2Q2014 for the Group was $133.2m, representing a 10% decrease from $147.9m in the same period last year.
On a half-yearly basis (1H2014), the Group s financial results were comparable to the same period last year. Group revenue stood at $3.14b, and PBT was $331.6m compared to $345.6m while Net Profit was $270.4m versus $281.9m. Aerospace sector s revenue of $1.04b was 6% higher from $982m while its PBT was comparable at $147.6m. The Electronics sector posted comparable revenue and PBT of $749m and $80.5m respectively. Revenue for the Land Systems sector was $618m, down 16% from $738m and its PBT was $37.1m, down 32% from $54.6m in 1H2013. The Marine sector posted revenue of $671m, up 19% from $565m and PBT of $56.2m, a decline of 14% from $65.3m in the same period last year.
Compared to 2Q2013, 2Q2014 recorded comparable Revenue and a lower PBT. Compared to 1H2013, the Group reported comparable Revenue and PBT for 1H2014. Although the global market remains weak and uncertain, the Group has maintained a strong order book of $13.4b. Cash and cash equivalents including funds under management remained high at $1.8b after payment of the final dividend for FY2013 of $374m. The Board of Directors has approved the payment of an interim ordinary dividend of 4 cents per share, payable on 4 September 2014. Barring unforeseen circumstances, the Group expects to achieve comparable Revenue and PBT for FY2014 vis-À-vis FY2013. ~ TAN Pheng Hock, President & CEO, ST Engineering.
In 2Q2014, commercial sales accounted for 62% or $1b of Group revenue. Order book stood at $13.4b as of the end of June 2014, and the Group expects to deliver $2.6b worth of orders in the remaining year. Total contracts worth about $1.2b were announced in 2Q2014. The Aerospace sector announced $520m worth of contracts for airframe, component and engine maintenance, freighter conversion, cabin modification, engine wash and pilot training.