Land Systems - Singapore Technologies Engineering

Total Support & Services
Singapore Airport Terminal Services Limited
(SATS), the leading provider of integrated ground
handling and airline catering services at Singapore
Changi Airport, became the first customer to use the
Hybrid Electric Tow Tractor HETT20 in January.
In June, ST Kinetics launched “STAR BLACK”
– an independent premium service centre that
delivers personalised, comprehensive automotive
services for high-end German cars from
marques like BMW and Mercedes Benz. This
complements the current one-stop automotive
services of STAR Automotive Centre.
These EXPORT
contracts attest
to the growing
confidence and
global recognition
of ST Kinetics’
defence products.
ST Kinetics expects more opportunities to provide
services such as integrated training, logistics and
life cycle cost management. The global economic
downturn would also reduce new acquisitions and
lead to increased demand for MRO services and
life extension programmes for existing components
and equipment.
Specialty Vehicles & Services
In March, ST Kinetics generated strong interest
for three new LeeBoy products and GJK’s mini
excavator at CONEXPO 2008 held in Las Vegas.
VT LeeBoy launched its new 9000 wheeled
Asphalt Paver, 705 Motor Grader and the upgraded
Maximizer III Distributor.
Later in May, the company set up VT Specialized
Vehicles, S.A. de C.V. (VT SVM) – a wholly-owned
subsidiary in Mexico – to sell VT SVC’s specialty
vehicles in Mexico and Latin America. Sales of
VT SVC kits in Latin America have enjoyed steady
growth over the last few years, and the company’s
presence in Mexico will enhance customer service
and facilitate expansion in the Latin American market.
At Bauma China 2008, held in Shanghai in
November, both GJK and BZK showcased their
range of products for the construction and mining
industries. Also exhibited at the show were a new
high mobility telehandler called Chang Jing 6, a
hydraulic excavator, articulated dump truck
ADT-30, CAV, and hybrid electric vehicle
components and solutions.
Besides growing organic sales, ST Kinetics’
specialty vehicles companies have placed
greater emphasis on the development of higher
margin products, and export sales. It has
expanded its market reach through establishing
new dealers in Australia, Indonesia, India,
Malaysia, the Philippines, South Africa, the UAE
and Vietnam. These initiatives will not only help
the specialty vehicles companies to weather the
challenging periods of downturn, but also to
emerge stronger on the upswing.
PERFORMANCE OF THE LAND SYSTEMS
SECTOR
Half Yearly Performance
Turnover of the Land Systems sector in 2H2008 of
$618m was 6% or $38m lower than that achieved
in 1H2008. The lower turnover was mainly due to
lower turnover from the US operations and lower
project deliveries.
Compared to 1H2008, PBT in 2H2008 decreased
by 54% or from $31.3m to $26.7m. The lower
PBT was mainly attributable to lower turnover and
lower margins from product mix, as well as the
impairment in value of a quoted investment.
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