ST Engineering posts 11% rise in full-year net profit to $491m

ST Engineering has posted a net profit of $491 million for the full year 2010, an 11% increase over 2009. Group turnover grew 8% to $5.98 billion.

The Land Systems and Marine sectors registered strong turnover increases of 29% and 10% respectively. The higher turnover in the Land Systems sector was mainly attributable to higher project deliveries and the sale of specialty vehicles. The Marine sector did well with higher shipbuilding, shiprepair and engineering activities such as engine repairs and naval logistics management. Notably, the Marine sector crossed the billion-dollar mark for its turnover for the first time.

Earnings per share grew by 10% to 16.21 cents and economic value added increased by 21% to $369.7 million. The group achieved a respectable 30.3% return on equity (ROE). For the full year, commercial sales constituted 59% or $3.5 billion of the group’s turnover. Cash and cash equivalents and short term investments totalled $1.79 billion, including customer advance payments of $1.53 billion.

ST Engineering’s board of directors is proposing a final dividend of 11.55 cents per share, consisting of an ordinary dividend of 4 cents per share and a special dividend of 7.55 cents per share.

Together with the interim ordinary dividend of 3 cents per share paid in September 2010, the total dividend of 14.55 cents translates to a yield of 4.36%, computed using the average closing share price of the last trading day of 2010 and 2009.

ST Engineering ended 2010 with a strong order book of $11.5 billion, compared to $10.3 billion as at end 2009. About $3.7 billion is expected to be delivered in 2011.