9 Quick Things Investors Should Know About Singapore Technologies Engineering Ltd’s Latest Earnings Update
Two weeks ago, Singapore Technologies Engineering Ltd (SGX: S63) reported its 2018 first quarter earnings update. As a quick introduction, ST Engineering is a large engineering conglomerate with business interests in various sectors, namely Aerospace, Electronics, Land Systems, Marine and others.
Here are nine key highlights from its latest earnings update:
1. Revenue for the reporting quarter grew by 9.0% year-on-year to S$1.65 billion.
2. Earnings before interest and taxes (EBIT) for the first quarter of 2018 improved by 8.4% year-on-year to S$122.1 million.
3. Profit attributable to shareholders climbed by 17.8% year-on-year to S$117.7 million.
4. Similarly, earnings per share (EPS) increased by 17.8% to 3.78 cents.
5. ST Engineering generated operating cash flow of S$430.7 million in the reporting quarter, up 7.8% from S$399.5 million a year ago.
6. As of 31 March 2018, ST Engineering’s total debt stood at S$1.04 billion while its cash and short-term investments stood at S$1.30 billion, giving it a net cash position of S$0.26 billion.
7. The engineering conglomerate’s order book stood at S$13.4 billion at the end of 2018’s first quarter, unchanged on a sequential basis. ST Engineering expects S$3.2 billion of its order book to be delivered in the remaining months of 2018.
8. The Aerospace, Electronics, and Land Systems segments grew their revenues by 9%, 22%, and 3%, respectively, compared to a year ago. On the other hand, the Marine segment saw its revenue decline by 16% year-on-year.
9. In ST Engineering’s earnings update, its president and CEO, Vincent Chong, gave some succinct comments on the company’s outlook:
“We started the year with healthy revenue growth and net profit. We also secured numerous contracts including Smart City projects in the past quarter. With a strong order book, the Group remains on track for steady growth.”