ST Engineering’s aerospace unit recorded a 35% jump in third-quarter operating profit, supported by strong revenue growth.
The unit reported S$79.3 million ($58.3 million) in operating profits for the three months ended 30 September, a significant increase from S$58.7 million last year.
Over the same period, revenue grew by an impressive 52.7% year-on-year to S$1.05 billion, while net profit gained 17.3% to S$65 million.
Higher third-quarter revenue was attributed to a new income stream from its newly-integrated Middle River Aircraft Systems (MRAS) unit, which was acquired from GE Aviation through its US subsidiary, Vision Technologies Aerospace.
During the period, ST Engineering Aerospace secured contracts worth S$1 billion including a 10-year agreement to work with Airbus Helicopters in the maintenance, inspection and on-demand repairs of the German Armed Forces’ NH90 fleet.
It also opened new component MRO facilities in Hanoi and Ho Chi Minh City, as part of a joint venture with Vietnam Airlines Engineering Company (VAECO).
On a year-to-date basis, ST Engineering Aerospace saw revenue grow 25% to S$2.5 billion in the nine months ended 30 September, while net profit increased by 6% to S$192 million. It did not provide a figure for operating profit.
Stating its outlook for the rest of the year, the unit expects to ramp up MRO operations in its new Vietnamese facilities.
It also hopes to complete and obtain certification for the prototype Airbus A321P2F converted freighter, and plans to pursue new freighter conversion and engine maintenance contracts.