SINGAPORE: Singapore Technologies Engineering has posted a first quarter net profit of S$122.5 million, up 13 per cent compared to the same period last year.

The company attributed the better earnings partly to higher weapons sales and a healthy contribution from its aerospace business.

Revenues rose 8 per cent on year to S$1.315 billion.

Leading the rise in profits is ST Engineering's Land Systems, which saw a 54 per cent on-year surge to S$27.7 million.

Over at its aerospace unit, profits climbed by four per cent to S$63.1 million. Meanwhile, earnings from its marine business was flat at S$14.2 million, while its electronics business rose by three per cent to S$16.5 million.

Its electronics business accounted for 13 per cent of the group's overall bottom line, down two percentage points on year.

Tan Pheng Hock, President & CEO, ST Engineering, said: "Electronics, although the growth has gone down, is largely because they had an associate company that was sold and that actually explained the bulk of the drop. Otherwise, it would have been flat."

Despite a slowing global economy, ST Engineering said it expects growth to continue this year on the back of a strong order book of over S$9 billion - despite losing a US$635 million maintenance contract from Skybus Airlines last month after the US carrier filed for bankruptcy.

Going forward, ST Engineering expects turnover from its aerospace and land systems sectors to be higher in the first half of this year, compared to a year ago.

Mr Tan continued: "Although the commercial sector has softened, the government business is growing. So, all in all, it will perform according to our expectations."

ST Engineering also said it will explore opportunities to expand through acquisitions in markets where it is less established. It has about S$1.6 billion in cash.

ST Engineering shares ended the day's trade unchanged at S$3.21 a piece. - CNA/vm