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ST Engineering Announces S$416m Boost

Ser Jing - ST Engineering First Quarter Results, Unchanged Revenue and Profit (pic)Aptly-named Singapore based engineering firm ST Engineering (SGX: S63) announced that its Electronics arm, ST Electronics, had won S$416m worth of contracts for the third quarter of 2013.

The blue-chip share is a an integral component of Singapore’s Straits Times Index (SGX: ^STI). There are four main businesses within ST Engineering, namely Aerospace; Electronics; Land Systems; and Marine.

The contract-wins are for the Electronics division and are specifically for communications projects, rail electronics, and satellite communications (satcoms).

The company said S$238m of the S$416m was awarded for communications and electronics systems, advanced Information Technologies, and rail electronics. ST Electronics said the contract awards helped “further strengthen its position as a leader in providing advanced electronics and Information Communications Technologies (ICT) and integrated rail electronics solutions.”

The remaining S$178m was for satcoms products and broadband communications solutions.

Lee Fook Sun, president of ST Electronics commented that the company’s rail electronics’ global footprint has been expanded, and with the contracts secured in the third quarter, have been “making headway into North and South America.”

The Electronics arm of ST Engineering accounted for a quarter of the company’s revenues last year and 20% of pre-tax profits. ST Electronics’ corporate progress is certainly important in the grand scheme of things for ST Engineering’s investors so that should be something for investors to take note of.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.