ST Engineering First-Half Profits Lifted By Strong MRO Demand

SINGAPORE—Double-digit growth in aerospace MRO and aerostructure systems has elevated ST Engineering’s first-half commercial aviation portfolio revenue by 20% over the year-ago period, as the segment saw S$2.1 billion ($1.6 billion) in new contracts secured over the first six months of the year.

In the second quarter alone, S$1.3 billion worth of new contracts were signed, including an Airbus A320 heavy maintenance contract for an unspecified Asian airline and a three-year Leap 1B quick-turn offload agreement extension with Safran Aircraft Engines.

MRO saw the strongest demand, with earnings increasing 32% year-on-year from S$868 million to S$1.1 billion. Aerostructures was up 20% over the same period a year prior to S$1.1 billion, and aviation asset management AUM (assets under management) also increased by 17% to S$2.3 billion.

ST Engineering says before-tax earnings for commercial aviation increased 7% year-on-year but were offset by a diminished contribution from significantly lower aircraft sales, project timing and sales mix.

Separately, Elbe Flugzeugwerke—the joint venture between ST Engineering and Airbus—says it has received European Union Aviation Safety Agency Continuing Airworthiness Management Organization (CAMO) approval from the Federal Aviation Office of Germany.

ST Engineering says it is the only freighter conversion provider in the world to hold CAMO approval together with three other major aviation technical approvals—Part 145 approval, Design Organization Approval and Production Organization Approval certifications—giving the company the ability to provide full turnkey solutions covering design, conversion maintenance, aviation supply chain management and CAMO support.