ST Aero sees 10% drop in engine, component MRO in Q2

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Second quarter revenue at Singapore-based ST Aerospace has decreased by 2% year-on-year to HK$494 million ($63.7 million), but earnings before interest and tax (EBIT) is up 3.4% to HK$65.2 million.

The lower sales were due to depreciation of the euro as well as less custom in the engine and component division plus the engineering and materials management division, says the maintenance, repair and overhaul (MRO) provider.

Quarterly engine and component support revenue fell nearly 10% to HK$159.6 million while business in the engineering and materials management segments fell almost 9% to HK$66 million.

The declines were partially offset by a 5.5% increase in the company's airframe business to HK$268.4 million.

Pre-tax profit rose nearly 20% to HK$81.6 million, which was partly due to property sales, the MRO provider says.

Revenue and pre-tax profit for the second half of this year are expected to be higher than in the first six months. The company registered HK$951 million in sales with a pre-tax profit of HK$141.4 million between January and June 2012.