ST Engineering reports lower year-on-year profits for 3Q2014

Singapore Technologies Engineering reported that financial results for its third quarter ended September 30th, 2014 (3Q2014) came in with lower profit before tax and net profit after tax on the back of a comparable revenue of SG$1.55bn against the same period last year. Quarterly PBT was SG$151.7m, down 10% from SG$168m, and quarterly net profit was SG$121.3m, down 8% from SG$131.4m. Group revenue was flat even though the Marine sector recorded higher revenue of $336m, which was largely offset by lower revenue recorded by the Aerospace sector. Revenue for the Aerospace sector was SG$470m, down 8% from SG$510m mainly attributable to the Component/Engine Repair & Overhaul business group which generated lower revenue. The weaker performance in the Aerospace sector’s European operations impacted its PBT, which saw a 19% drop to SG$63.5m from SG$78.5m a year ago. This in turn impacted the Group PBT even though the Electronics sector enjoyed a 9% increase in PBT to SG$47m from SG$43m. During the third quarter, commercial sales accounted for 58% or $0.9b of 3Q2014 revenue.