Singapore Technologies Engineering Ltd’s 2018 Third-Quarter Earnings Result

Singapore Technologies Engineering Limited (SGX: S63) specializes in aerospace, electronics, land defense systems, and marine capabilities for defense and commercial enterprises. The Company provides integrated aerospace, engineering, and maintenance services for military and commercial aircraft. The undervalued stock recently released its financial results for the third quarter ended 30 September 2018.

Here Multi Management Future Solutions research some outstanding stats of Singapore Technologies Engineering Limited 2018 Third-Quarter Earnings Result report which all investors should be considered before investing on it, let's take a look-

1. The reporting quarterly revenue of Singapore Technologies is inched up by 1% YOY to S$1.63 billion. The main segment of its growth is driven by the aerospace and electronics sectors; revenue from those sectors rose 13% and 2% respectively. Land systems and marine segments saw lower revenue for the quarter. The marine segment’s top-line fell 16% to S$137 million.

2. Due to the higher administrative expenses, and distribution and selling expense its profit from operations became down by 1.3% to S$143.6 million.

3. The ner profit of Singapore Technologies Engineering rose 5.3% to S$134.6 million. The aerospace, electronics, and land systems sectors saw higher profitability while the marine sector posted a 35% fall in net profit.

4. The balance sheet of ST Engineering’s improved for the latest period. As of 30 September 2018, the group had S$352.6 million in cash and cash equivalents, with S$370.7 million in total borrowings.

5. The Q3 cash flow result from its operation plunged 61.3% to S$43.3 million. The company posted negative free cash flow of S$5.7 million for the 2018 third-quarter. In the 2017 third-quarter, the combination had S$15.2 million in free cash flow.

6. ST Engineering entered the quarter with an order book of S$13.3 billion. Around 12% of the amount is expected to be delivered in the remaining period of this year.