Defence contractor Singapore Technologies Engineering has turned in a first quarter net profit of S$108 million - a jump of 23 per cent from the same period a year ago.
This was due to strong orders for its aerospace, electronics and shipbuilding businesses.
ST Engineering is seeing strong demand from the booming aerospace and land systems sectors, pushing its orderbook to a record S$9.7 billion as at the end of March.
For the first quarter this year, ST Engineering booked a 21 per cent rise in revenue to S$1.2 billion.
"Aerospace in the last couple of years we added on capacity. We added companies like SAS Components, we added on Starco, and you also see us strong in the US securing Fedex orders for the passenger-to-freighter conversion," says Tan Pheng Hock, President and CEO, Singapore Technologies Engineering.
"We also secured Boeing orders for conversion of 767s. We have a very strong aerospace position in the market, and that translates into very strong performance.
In the land system, our special vehicles are adding to our bottomline. Not just in the US but also our Chinese business is turning profitable, turning around. I think all this is adding to the bustling land systems," continues Tan.
The world's top aircraft repair firm has also just secured a new S$24 million deal with China's Juneyao Airlines.
It is positive about its outlook this year, saying it anticipates to see new income streams from companies recently acquired in the US and Europe.
Says Tan, "In aerospace, Panama is going to be a new market. We are going to start operations this month, next month. Kopa (Airlines) will be our first customer, and this is a market we have been missing all these years, the Latin American market.
We also see customers from North America, the low cost carriers, who need a low cost centre to support what they're doing. Plus Latin America does not have a credible strong third party player in MRO, that's where we are positioning ourselves. And not forgetting we said SAS Components, we hope to turn it profitable this year."
Going forward into the first half of 2007, ST Engineering expects to achieve a higher turnover and net profit compared to a year ago.
This applies to all sectors, with the exception of the marine cluster.
The group expects the marine cluster to further soften this year, due to lower-margin sales mix.
However, it expects the marine segment to pick up profitability in 2008, when higher-margin military contracts with the US and Egyptian navies kick in.
ST Engineering also stressed that it has no immediate plans to sell its 45 per cent stake in the CityCab taxi business, saying it was a good cash generator.
This was due to strong orders for its aerospace, electronics and shipbuilding businesses.
ST Engineering is seeing strong demand from the booming aerospace and land systems sectors, pushing its orderbook to a record S$9.7 billion as at the end of March.
For the first quarter this year, ST Engineering booked a 21 per cent rise in revenue to S$1.2 billion.
"Aerospace in the last couple of years we added on capacity. We added companies like SAS Components, we added on Starco, and you also see us strong in the US securing Fedex orders for the passenger-to-freighter conversion," says Tan Pheng Hock, President and CEO, Singapore Technologies Engineering.
"We also secured Boeing orders for conversion of 767s. We have a very strong aerospace position in the market, and that translates into very strong performance.
In the land system, our special vehicles are adding to our bottomline. Not just in the US but also our Chinese business is turning profitable, turning around. I think all this is adding to the bustling land systems," continues Tan.
The world's top aircraft repair firm has also just secured a new S$24 million deal with China's Juneyao Airlines.
It is positive about its outlook this year, saying it anticipates to see new income streams from companies recently acquired in the US and Europe.
Says Tan, "In aerospace, Panama is going to be a new market. We are going to start operations this month, next month. Kopa (Airlines) will be our first customer, and this is a market we have been missing all these years, the Latin American market.
We also see customers from North America, the low cost carriers, who need a low cost centre to support what they're doing. Plus Latin America does not have a credible strong third party player in MRO, that's where we are positioning ourselves. And not forgetting we said SAS Components, we hope to turn it profitable this year."
Going forward into the first half of 2007, ST Engineering expects to achieve a higher turnover and net profit compared to a year ago.
This applies to all sectors, with the exception of the marine cluster.
The group expects the marine cluster to further soften this year, due to lower-margin sales mix.
However, it expects the marine segment to pick up profitability in 2008, when higher-margin military contracts with the US and Egyptian navies kick in.
ST Engineering also stressed that it has no immediate plans to sell its 45 per cent stake in the CityCab taxi business, saying it was a good cash generator.
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