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ST Engineering aerospace sector secures S$590m in new contracts in Q3

ST Engineering announced on Monday that in the third quarter of 2018, its aerospace sector secured new contracts worth about S$590 million, for services ranging from airframe, engine and component maintenance to engine wash.

These include multi-year contracts such as a four-year ATR 72 landing gear overhaul agreement from an Asian airline, a five-year contract extension to maintain the PW4000 thrust reversers and inlets of an European operator's A300-600 fleet and heavy maintenance agreements from American freight operators.

In Q3, ST Engineering's aerospace sector re-delivered a total of 208 aircraft for airframe heavy maintenance and modification work, processed 11,992 components, 35 landing gears and 45 engines, as well as conducted 2,644 engine washes.

It also continued to expand its aftermarket services in nacelle systems - the part of the aircraft which houses engines - by setting up maintenance, repair and overhaul capabilities for A320's V2500 and CFM56-5B nacelles. It is now developing aftermarket capabilities in new-generation flight control and nacelles systems used in aircraft platforms such as Boeing 737MAX and Boeing 777.

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Its airframe maintenance portfolio in China was also expanded when its Guangzhou facility gained approval from the Civil Aviation Administration of China to carry out base maintenance for the Boeing 767 platform.

These developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

ST Engineering closed down three Singapore cents or 0.875 per cent at S$3.40 on Monday before the announcement.