ST Engineering

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Law is law must be follow.

When talking about big multi-million dollar deals nothing is ever black and white, if the whole business world is black and white then everything is very simple but it's not. You don't play the game to get the deal somebody else will be hungry for it and willing to play the game. If you don't get the deal means somebody in your company going to get laid off maybe you.

We see in the past even small deals sex for IT contracts or sex for grades somebody is hungry to give and also somebody wants to receive.

I think I have a very simple solution and there could be a big new industry angle here and that's engaging a go-between. What if ST outsources or engages a consultant or some company outside of ST to entertain their clients on their behalf? So on paper what goes on between their client and consultant how entertainment is being delivered is none of their business and ST executives are not involved in any way, the only thing is entertainment company must show some deliverable to ST maybe "customer satisfaction" survey from their client Big Grin

So is this consider bribery? Is this a way of getting around laws?
It's nothing new. Go-betweens, brokers, guides have long existed. A more polite term might be deal makers.
You can count on the greed of man for the next recession to happen.
go-between meaning organizer an ex-ktv mamasan/papasan could become a private consultant help "organize events"

When auditor check all they find is an entry $x paid to xyz consultant for some customer satisfaction surveys. Tongue
maybe some think it's ridiculous bad idea but actually I got this idea when I read some giant american mnc also doing that already they hire outsiders like playboy playmates or softporn models as consultants to meet with their customers.

Of course if you do that you must also be discipline and keep your own hands out of the cookie jar Big Grin
(02-01-2015, 05:37 PM)LionFlyer Wrote: It's nothing new. Go-betweens, brokers, guides have long existed. A more polite term might be deal makers.

Also, Professional Deal Makers, Market Consultants, with 2 to 5% of professional fees expected! Big Grin

Big boys showing the way how biz is done! Tongue
GlaxoSmithKline to pay $3bn in US drug fraud scandal
In addition, GSK has been found guilty of paying kickbacks to doctors.
The sales force bribed physicians to prescribe GSK products using every imaginable form of high-priced entertainment, from Hawaiian vacations [and] paying doctors millions of dollars to go on speaking tours, to tickets to Madonna concerts," said US attorney Carmin Ortiz.
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 

ST Engineering’s Aerospace Arm Secures New Contracts Worth $298M in 1Q2015

Singapore, 14 April 2015 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm has clinched new contracts worth $298m in the first quarter (1Q) of 2015. These new orders involve projects ranging from aircraft maintenance and cabin interior modification, to engine wash and pilot training.

Included in the 1Q2015 contracts is a five-year Maintenance-By-the-Hour (MBH™) agreement signed with an existing Asia-based airline customer, operating a fleet of Boeing 737NG aircraft. Under the agreement, ST Aerospace will provide MBH™ support services for nine 737NG aircraft, covering component repairs, consignment of spares, as well as access to its inventory pool of rotables worldwide. This new contract adds to the current MBH™ contract signed in 2010, for the support of the airline’s ten 737NG aircraft.

Additionally, a contract was sealed with an international airline for heavy maintenance of six Boeing 767 and 777 aircraft. The first aircraft was inducted in March 2015, with project completion of the entire fleet scheduled for mid 2015.

In Guangzhou, its airframe maintenance facility has inducted the first Airbus A320 aircraft from an Asian low-cost airline for heavy maintenance. There will be a total of 21 A320 aircraft undergoing a series of C-checks throughout the year in its Guangzhou facility.

In the US, an agreement was signed with a US-based leasing company for the aircraft interior modification of two 737 aircraft.

On pilot training, its flight training academy in Singapore has signed a five-year agreement with a Middle Eastern customer for a Multi-crew Pilot License programme. The first batch of 11 cadets will commence training in June 2015.

During the quarter, ST Aerospace won two other 737NG landing gear overhaul and exchange contracts for airline operators in Asia. In 1Q2015, the aerospace sector redelivered a total of 250 aircraft for airframe maintenance and modification work.

In addition to airframe redeliveries, a total of 11,332 components, 49 landing gears and 48 engines were processed, while 1,631 engine washes were conducted for both commercial and military customers.

On aircraft capability development, the aerospace sector’s airframe facility in Guangzhou has obtained additional certifications from the US Federal Aviation Administration (FAA) for Airbus A330 and Boeing 757 aircraft. In the US, the first part-out has been accomplished on a McDonnell Douglas MD-11 aircraft, for a European aircraft leasing company.

On cabin interior capabilities, ST Aerospace has established a new joint venture with Tenryu Holdings Co, Ltd. Based in Singapore, ST Aerospace Aircraft Seats will be responsible for the end-to-end design and manufacturing of a series of economy, business and first class aircraft seating solutions.

On pilot training capabilities, its US flight training academy is now operational as a FAA Part 141 certified institution, to conduct commercial pilot training programmes in Hondo, Texas for both local and international students.

The above 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.

(Not vested)
ST Engineering 1Q2015 earnings down 5.3% at $130 million

By Frankie Ho / | May 13, 2015 : 7:29 AM MYT
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SINGAPORE (May 13): Weakness in its US shipbuilding business left ST Engineering with lower earnings of $130 million in 1Q2015. It earned $137.2 million a year earlier.

Pre-tax profits from most of its core divisions fell, but the biggest decline was seen in its marine arm, where profit dropped 26% to $23.4 million.

The group's top line slipped 2.6% to $1.51 billion.

ST Engineering's marine arm reported the largest decline in revenue - down 13% to $280 million. Marine revenue from the US fell 26% to $81.4 million.

The group ended the quarter with an order book of $12.2 billion, of which $3 billion is expected to be delivered the rest of this year.

In 1Q2015, its aerospace arm secured $298 million worth of new orders, while its electronics arm clinched contracts worth $383 million.

"Barring unforeseen circumstances, the group expects to achieve comparable revenue and pre-tax profit for FY2015 when compared to FY2014," ST Engineering CEO Tan Pheng Hock said in a statement today.

ST Engineering shares ended 1.1% lower at $3.63 yesterday.
STE: One perspective seems simple enough - if you lose STE, you've practically lost Singapore. STE would be my pick for diversified businesses including those in Singapore. However, the share price seems way too high (didn't check when I purchased this), even at $3.30... Main idea is I had expected 20x PE to be a lightly fluctuating level, but of course its revenue has decreased somewhat and therefore every other financial metric will be at stake. My expectations then (never update expectations) were for 4-4.5% dividend to all be "returned" to me after 25-30 years if STE would turn a profit in much the same way as it did over the past ~6 years. Then I would have both the STE share and any dividends it might possibly pay. (there is a regular dividend - albeit low - which signals company to investor expectations, although of course this can be amended at anytime, even for regular dividend payments) The price-to-book is too high, debt is too high (although still a conservative percentage of its total assets), and it has to pay off its liabilities before paying any dividends.

However, as mentioned I reckon this is a company that can be termed "forced-to-succeed" or found in a "forced-to-survive" type of situation, and at least for the next 25-30 years, my expectation is to be able to own a piece of this conglomerate as a means to stay out of cash and in some income-generating investment.

Having said this, I am glad to update my files for a company non-increasing earnings and dividend payouts share and just sell it (at whatever price) if proven to be a mistake in my investments portfolio. Since the aforementioned "survival" does not include "growth" at some reasonable (hopefully, non-financial) cost and/or investment partnerships which seems crucial to survival for this company.

Finally, the company should perhaps not keep any white elephants as personnel, if there are any, in my view (I suppose the old-timers have their CPF and that should be enough for them to survive).

P&CEO Tan Pheng Hock is on medical leave of absence. He
had a mild stroke and was admitted to the hospital for observation. The duration of his
medical leave could be about four weeks pending doctors' review of his condition and
recommendations. We understand he is making good progress in his recovery.
time for him to "retired" after all the corruption hoos-haas! Tongue
health is the best face saving grace...

next CEO, Vincent Chong?

1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 

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