Singapore Technologies Aerospace (ST Aero) has reported a 3% rise in pre-tax profits for 2001, but warns it faces an uncertain future.
Pre-tax profit grew to S$226 million ($122 million) on the back of an 8% increase in turnover to S$1.03 billion, which helped offset lower income from investments and associated companies. But the company warns it is being hampered by the global economic downturn and the terrorist attacks on the USA. "The aerospace sector's performance is expected to be comparable to 2001 despite increased insurance costs," says ST Aero president Tay Kok Khiang. "However, there remain uncertainties in the market."
The company expects the first quarter of 2002 to be weaker than the last quarter of 2001, due to the downturn and the relatively high number of year-end deliveries.
The aircraft maintenance and modification business group was hit particularly hard in the fourth quarter of 2001, posting a 33.8% fall in pre-tax profit to S$16.3 million. The company blames the fall on the "learning curve effect" of its Boeing 757 passenger-to-freighter conversion programme, and will launch "new development initiatives" at next month's Asian Aerospace show in Singapore.
Source: Flight International
