Singapore Technologies Engineering (ST Engineering) on Monday reported revenue of $2.3 billion for the first quarter, up 13% from $2 billion in Q1 of 2022 as the revenue in most business segments booked improvements over the quarter leading to top-line growth.
However, the group noted that supply chain disruptions and project delays led to a significant impact on the revenue growth.
ST Engineering’s commercial aerospace business posted a 29% year-on-year increase in revenue to $873 million from $674 million citing recovery of passenger traffic as borders opened. The Group’sfirst-quarter revenue for the segment was higher than pre-Covid-19 levels as air travel recovered to more than 80% of pre-pandemic levels in January and February 2023.
Domestic travel reached near full recovery at 97%, while international travel stood at 78% with the opening of China market, ST Engineering expects more growth in its commercial aerospace sector.
The group added that narrow-body aircraft production is expected to be strong over the next 10 years. ST Engineering manufactures nacelles for Airbus’ A320neo fleet, which is projected to see growth.
ST Engineering’s order book stood at $25.4 billion as of March 31, 2023. The group expects $5.8 billion worth of contracts to be delivered over the rest of 2023.