ST Aerospace Secures $450m Worth of New Contracts in 4Q2012

Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm Singapore Technologies Aerospace Ltd (ST Aerospace) has secured new contracts worth about $450m in the fourth quarter of 2012.  The contracts are for airframe, component and engine maintenance, as well as engineering and development, which will be carried out through its global network.

In the quarter, ST Aerospace redelivered 165 aircraft for airframe maintenance and modification work.  For passenger-to-freighter (PTF) conversions, it redelivered five converted Boeing 757-200 freighters, bringing the total number of PTF redelivery in 2012 to 16.  Besides airframe redeliveries, ST Aerospace processed 9,847 components, 61 landing gears and 78 engines for both commercial and military customers.

In Singapore, it broke ground to add a narrow-body aircraft hangar at its Changi facility for its airframe maintenance, repair and overhaul (MRO) business.  Expected to begin operations by the end of third quarter 2013, the new hangar will be able to accommodate two narrow-body aircraft such as the Boeing 737 and Airbus A320, contributing an additional 200,000 man-hours annually and extending a wider range of airframe MRO services.

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In the US, VT Aerospace completed the acquisition of its 100% equity interest in Volant Aerospace, LLC, as the aerospace sector develops its cabin interior engineering, manufacturing and repair capabilities.  Volant will be managed as part of the aerospace sector’s global MRO network, working closely with ST Aerospace’s MRO subsidiaries, affiliates and in-house engineering and development  centre, as well as its engineering design specialist, DRB Aviation to offer one-stop turnkey cabin retrofit services.

Making headway in the VIP aircraft completions sector, AERIA Luxury Interiors secured a contract for the interior modification of a Boeing 767-200ER VIP aircraft, covering project management, design, engineering and installation.

The developments above 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.

Source: Singapore Technologies Engineering Ltd (SGX: ST Engg)
Date: Jan 10, 2013