ST Engineering’s commercial aerospace division saw strong revenue growth in the first half of the year, led by an uptick in revenues from MRO and aerostructure activity.
For the six months ended 30 June, aerospace revenues rose 20% year on year to S$2.2 billion ($1.67 billion), with aerospace MRO seeing the highest revenue increase within the business, at 32%.
ST Engineering’s aerostructures and systems sub-unit saw a 20% increase in revenues, while the aviation asset management sub-unit recorded a 17% rise.
ST Engineering disclosed a modest 7% rise in half-year EBIT for its commercial aerospace business, to S$190 million, as its earnings were impacted by “significantly lower aircraft sales, project timing and sales mix”.
The business clinched S$2.1 billion in new contracts for the half year, which more than half of it - around S$1.3 billion - won in the April-June quarter.
These include airframe heavy maintenance work for the Airbus A320, as well as a series of CFM International Leap-1A engine repair contract extensions with Safran Aircraft Engines.
As a group, ST Engineering reported an operating profit of close to S$485 million, up 15% year on year. Revenue grew 13.5% to S$5.5 billion.
