ST Engineering Aerospace posted an operating profit of S$63.9 million ($46.7 million) in the first three months of the year, a drop of 7.9% from the same period a year ago.
Total revenue for the quarter ended 31 March rose 4% to S$623 million, led by increases in revenue from component and engine overhauls, as well as engineering and materials services businesses.
Attributable net profit for the period increased 5.9% to S$62.7 million.
The company saw the bulk of revenue for the quarter coming in from Asia (42%), while Europe and the US each contributing 25% to its revenue.
During this period, ST Engineering Aerospace secured S$1.28 billion in new contracts, including a 10-year airframe MRO contract with a long-time North American customer, Bombardier Q400 component support for new African and European airline customers, as well as engine wash and equipment leasing to customers in the Middle East and Europe.
In its outlook for the first half of 2019, ST Engineering Aerospace will pursue the launch customer for the A320 freighter conversion programme and grow its aircraft leasing portfolio.
It will also begin integrating the former GE engine nacelle unit Middle River Aircraft Systems (MRAS) into its operations, and accelerate the digitalisation of its global operations by adopting smart technologies in a bid to differentiate itself through efficiency.