Last week, Singapore Technologies Engineering Ltd (SGX: S63), or ST Engineering, reported its second quarter earnings for 2018. As a quick introduction, ST Engineering is a conglomerate with business interests in various sectors, namely Aerospace, Electronics, Land Systems, Marine and others.
Here are 10 things that investors should know from ST Engineering’s latest earnings:
1. Revenue for the reporting quarter declined 3.3% year-on-year to S$1.7 billion.
2. Earnings before interest and taxes (EBIT) for the second quarter improved by 15.4% year-on-year to S$144.5 million.
3. Profit attributable to shareholders for the quarter grew by 10.0% year-on-year to S$117.5 million.
4. Earnings per share (EPS) grew 9.3% year-on-year to 3.75 cents.
5. ST Engineering generated operating cash flow of negative S$38.5 million in the quarter, up from negative S$50.8 million seen last year.
6. As of 30 June 2018, ST Engineering’s total debt stood at S$1.02 billion while its cash and investments stood at S$1.21 billion, giving it a net cash position of S$0.19 billion.
7. The engineering conglomerate’s order book stood at S$13.4 billion at the end of the quarter, unchanged from 31 December 2017. ST Engineering expects S$2.7 billion of its order book to be delivered in 2018.
8. The company declared an interim dividend of S$0.05 per share for the quarter.
9. Aerospace segment revenue grew by 12% year-on-year. On the other hand, the electronics, land systems and marine segments saw revenue decline by 10%, 11% and 9%, respectively, as compared to last year’s second quarter.
10. ST Engineering’s president and CEO, Vincent Chong, added the following comments on the reporting quarter:
“Our Aerospace and Electronics sectors delivered strong 2Q2018 earnings. Our order book remained robust at $13.4b, contributed by new orders including those in the Smart City spaces. On the whole, we are tracking well on our strategy of strengthening our core as well as actively pursuing growth opportunities in defence exports and Smart City projects.”
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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.