Continue reading this on our app for a better experience

Open in App
Floating Button
Home Capital Results

ST Engineering reports 2% fall in FY18 earnings to $494 mil

PC Lee
PC Lee • 2 min read
ST Engineering reports 2% fall in FY18 earnings to $494 mil
SINGAPORE (Feb 21): ST Engineering reported a 26% drop in 4Q18 earnings to $124.5 million from a year ago.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Feb 21): ST Engineering reported a 26% drop in 4Q18 earnings to $124.5 million from a year ago.

This brings FY18 earnings to $494.2 million, down 2% y-o-y. Revenue was up 3% at $6.7 billion for the year.

For the quarter under review, group revenue came in 5% higher y-o-y at $1.77 billion while PBT dropped 7% y-o-y to $160.5 million.

Excluding one-off charges of $25 million before tax, PBT would have been 7% higher y-o-y at $185.6 million, and earnings would have been 1% higher at $149.1 million if prior year’s one-off favourable US tax adjustment of $20 million was excluded as well.

Compared to the same period last year, revenue for the Aerospace sector was down 13% at $647 million mainly due to lower project milestone completion for existing Airbus passenger-to-freighter conversions. Net profit was 27% lower y-o-y at $63.5 million due to loss from disposal of business entities and MRAS acquisition-related expenses.

Revenue for the Electronics sector was $536 million, up 16% from $461 million a year ago and its net profit was $44.1 million, down 20% versus same period last year due to less favourable sales mix. The land systems sector’s revenue increased 29% y-o-y to $435 million due to higher project deliveries and it turned in a net loss of $0.7 million from net profit of $42.6 million a year ago due to one-off charges of about $20 million related to portfolio rationalisation and the absence of favourable U.S. tax adjustments.

Revenue for the Marine sector was 6% higher at $139 million, and its net profit improved from $0.7 million a year ago to $14.5 million.

ST Engineering ended the year with an order book of $13.2 billion, of which $4.9 billion is expected to be delivered in 2019.

Its board has proposed a final dividend of 10 cents per share. Together with the interim dividend of 5.0 cents per share distributed in August 2018, shareholders will receive a total dividend of 15 cents per share for FY18.

Shares in ST Engineering closed 4 cents higher at $3.77 on Wednesday.

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

Get the latest news updates in your mailbox
Never miss out on important financial news and get daily updates today
×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.