Singapore Technologies Aerospace (STAe) turned in a solid performance for the first half of 1997, boosted in part by a return to profitability of its Commercial Business Group (CBG) on the back of firmer civil-aircraft maintenance markets.
STAe showed a net profit of S$28 million ($19 million ) for the six months to the end of June, up from less than S$7 million a year ago.
The results build on STAe's recovery in 1996 when it swung back to profits, reversing the losses of 1995. The recovery has been further boosted by the CBG civil business , which turned a small loss into a S$8.7 million net profit over the first half of 1997.
Much of the improvement has been attributed to a stronger third-party aircraft-maintenance business. ST Aviation Services (SASCO) and US-subsidiary ST Mobile Aerospace Engineering both registered big increases in turnover on the back of improved airframe throughput and firmer hourly work rates.
The Military Business Group (MBG), however, continues to be STAe's main source of revenue despite thinner margins. The MBG contributed a net profit of S$14 million, up on S$4.5 million as the result of better commercial engine, component and military export sales.
Source: Flight International
