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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.”

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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 Lawrence Nga doesn’t own shares in any companies mentioned.