The global engineering group posted its earnings for 2020 before market open today.
Let’s find out how it performed amid the pandemic.
Business Hit By COVID-19, But…
ST Engineering’s revenue for 2020 tumbled 9% year-on-year, from S$7.87 billion in 2019 to S$7.16 billion.
The decline in the top-line was mostly due to the impact of COVID-19 on the group. There were 1) reduction in customer demand, 2) supply chain challenges, and 3) workforce disruption during the year.
ST Engineering’s aerospace segment was hit the most as passenger air travel was almost brought to a standstill.
The following shows ST Engineering’s revenue performance by sector:
ST Engineering’s net profit for 2020 declined by 9.7% to S$521.8 million.
On top of lower revenue, the group’s bottom-line fell due to impairment of intangible assets and fair value changes of associates on the back of COVID-19.