ST Engineering's aerospace segment profits up 6% to $79m
This is due to contributions from the engineering & material services segment.
One of ST Engineering's brightest spots in the past quarter is its aerospace segment.
According to UOB Kay Hian, the group's aerospace segment recorded a 6.3% jump in profits before taxes (PBT) to $79m in the said quarter.
Analyst K Ajith said this is due to the rise in engineering & material services (EMS) segment PBT.
Meanwhile, the group's aircraft maintenance & modification (AMM) PBT declined 30% YoY due to the lack of contribution from a major conversion project.
"However, we also note that revenue out of the US fell by 14%, suggesting weakness at its core aircraft maintenance business in the region," Ajith explained.
Moving forward, the analyst noted how optimistic ST Engineering remains on its passenger-to-freighter (PTF) conversion programme and highlighted the contract win from DHL for an additional 4 A380 PTF and an option for 4 more during the period.
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