Byte Sized News Release: ST Aerospace secured new contracts worth $770M in 2Q16.

On 12 Jul 16, Singapore Technologies Engineering Ltd (ST Eng) announced that ST Aerospace, its aerospace arm has secured new contracts worth $770m in 2Q16, for projects ranging from air-frame maintenance and cabin interiors, to engine wash, and component repair and overhaul.

ST Aerospace signed a general trade agreement for component support with an European airline, for the Boeing 787 nacelle component exchange and repairs, while securing landing gear work for a military operator. Multiple contracts have also been sealed with customers in Asia Pacific, Europe and the US for EcoPower® engine wash services. ST Aerospace also signed new contracts for heavy airframe maintenance for commercial airlines and military operators, as well as cabin interior modifications for various customers.

The aerospace sector redelivered a total of 722 aircraft for air-frame maintenance and modification work in 2Q16.  This included the first Boeing 787 C-level maintenance check completed for a regional airline, cabin interior modifications for both VIP aircraft and commercial airliners, as well as an A380 cabin overhaul for a European customer.  Additionally, a total of 11,790 components, 37 landing gears and 29 engines were processed, while 2,643 engine washes were conducted for both commercial and military customers.  187 composite ship-sets were delivered to the aircraft OEM in the second quarter of 2016.

On component MRO, the aerospace sector continued to add new capabilities to support the Boeing 787 operators.  The newly added capabilities cover electrical systems and harnesses.

Separately on aircraft seats design development, ST Aerospace became the first company to receive the Production Organisation Approval from the Civil Aviation Authority of Singapore,

St Eng’s book order at end of Mar 16 stands at S$11.5 billion, of which about S$3.0 billion is expected to be delivered in the remaining months of 2016. 2Q16’s order book of S$770 million is worth 6.7% of ST Eng’s entire book order. According to ST Eng, these developments are not expected to have any material impact on the consolidated earnings per share of ST Eng for the current financial year.

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Previous article on ST Eng:

1. How you could have made 10% in 3 days
2. ST Aerospace has secured new contracts worth S$443m in 1Q16.
3. ST Electronics secured new contracts worth $505M in 1Q16.

Note: Byte Sized Investments has vested stakes in ST Eng