ST Engineering’s 3Q earnings fall 42% to $76.7 mil on one-off impairment charge

SINGAPORE (Nov 10): ST Engineering, the engineering solutions provider, posted a 42% decline in 3Q16 earnings to $76.7 million from $133.3 million a year ago.

The weaker bottom line was mainly attributed to the land systems sector, which grew 5% in revenue to $334 million but reported a net loss before tax of $41.4 million. This was a result of a $61.1 million one-off charge on an impairment of asset carrying values and provision for closure costs for JHK, its road construction equipment business in China.

Group revenue for the quarter rose 8% to $1.6 billion compared to $1.5 billion in 3Q15, largely buoyed by the aerospace and electronics sectors which posted 11% and 9% higher quarterly revenues of $563 million and $466 million respectively.

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