ST ENGINEERING’S NET PROFIT GREW 15% IN 1H2012

Singapore, 14 August 2012 – Singapore Technologies Engineering Ltd (ST Engineering) today reported higher revenue and profits in 2Q2012 compared to the same period last year. Group revenue increased 6% to $1.57b while profit before tax (PBT) rose 13% to $187.8m and profit after tax (Net Profit) grew 10% to $143.1m.

For the first half of 2012, both PBT and Net Profit for the Group grew strongly at 15% on a modest revenue increase of 2% over the same period in 2011.

The Aerospace sector posted revenue of $493m, which is comparable to 2Q2011. Revenue from the Electronics sector grew 9% to $348m, mainly contributed by milestone completion of a commuter rail project, higher sales of Satellite Communications (Satcom) products and Electro-Optics equipment as well as milestone completions of a VSAT network project. Higher project deliveries in the Automotive business group contributed to higher revenue of $389m for Land Systems sector, an increase of 11%. The Marine sector’s revenue increased 7% to $277m as a result of higher Shipbuilding revenue.

Commercial sales accounted for 65% or $1.0b of 2Q2012 revenue. At end June 2012, the Group maintained its financial strength with cash and cash equivalents, and short-term investments of $2.0b.

“The Group registered growth in Revenue, PBT and Net Profit of 6%, 13% and 10% respectively in 2Q2012 over 2Q2011. Compared to 1Q2012, PBT and Net Profit rose by 16% and 7% respectively. The Group’s order book as at end of the quarter scaled an all time high of $12.7b.

Compared to 1H2011, 1H2012 Revenue grew modestly at 2% while PBT and Net Profit grew strongly at 15%. This is attributable to growth at the Aerospace, Electronics and Marine sectors.

Barring unforeseen circumstances, the Group expects to achieve higher Revenue and PBT for FY2012 over FY 2011.” ~ TAN Pheng Hock, President & CEO, ST Engineering

Strong revenue visibility with record level order book

In 2Q2012, ST Engineering announced total contract value of $1.46b from Aerospace, Electronics and Marine sectors. Revenue visibility remained strong with order book at a record level of $12.7b, of which the Group expects to deliver about $2.5b in the remaining months of 2012.

The Aerospace sector secured about $370m worth of new contracts for Aircraft Maintenance and Modification, Component Total Support, and Engine Total Support businesses. Other developments included its agreement with Airbus, EADS and EADS EFW to launch the A330 Passenger-to-Freighter conversion programme, and its investment completion in EcoServices that expanded its engine total support value chain. The Electronics sector continued to strengthen its market position locally and internationally with new contracts worth about $210m for its rail electronics, traffic management and Satcom solutions. The Marine sector secured its largest defence contract to-date, when it was awarded the contract worth about $880m by the Royal Navy of Oman to design and build four patrol vessels.

Interim Dividend

The Board of ST Engineering has approved an interim ordinary dividend of 3 cents per ordinary share. This is payable on 13 September 2012.