SIA Engineering chalks up 11% rise in fourth-quarter profit

SIA Engineering (SIAEC) has posted a 10.9 per cent jump in fourth-quarter net profit to $45.9 million, year on year.

This was due in part to higher profits from associated and joint venture companies, as well as higher contributions from the engine repair and overhaul centres.

Revenue in the three months to March 31 was $295.4 million, just a tad higher than for the same period last year.

Spending rose by 1.8 per cent to $271.5 million, owing mainly to an increase in staff costs.

The resulting operating profit of $23.9 million fell $3.6 million or 13.1 per cent.

  • AT A GLANCE

  • NET PROFIT $45.9 million (+10.9%)

    REVENUE $295.4 million (+0.4%)

GROWTH TRAJECTORY

These initiatives will strengthen the group's core competencies and service offerings, and position us well to seize emerging opportunities for long-term growth.

SIA ENGINEERING, on its continuing investments in strategic partnerships and advancing innovations.

Fourth-quarter earnings per share was 4.09 cents, up from 3.69 cents a year earlier.

Net asset value per share was 138.8 cents as at March 31, up from 132.4 cents as at March 31 last year.

For the full year to March 31, net profit jumped 88.2 per cent from a year earlier to $332.4 million, mainly due to divestment gains in the first quarter.

Full-year revenue slid a little to $1.104 billion, from $1.112 billion.

In spite of global uncertainties and challenges in the maintenance, repair and overhaul sector from excess capacity and aggressive pricing, there remain growth opportunities, SIAEC said.

The firm will continue to invest in strategic partnerships and advancing innovations, and maintain vigilance on costs.

For example, SIAEC has inked agreements with Boeing on fleet management and Airbus on heavy maintenance business.

A memorandum of understanding has been signed with Stratasys - a leading 3D printing and additive manufacturing solutions company - to offer design, engineering, certification support and parts production to airlines.

"These initiatives will strengthen the group's core competencies and service offerings, and position us well to seize emerging opportunities for long- term growth," SIAEC said.

The firm has proposed a final dividend of 9 cents per share and a special dividend of 5 cents per share.

Together with the interim dividend of four cents per share paid earlier, the total dividend payment for the year will be 18 cents per share. The total payment amounts to about $157 million.

A version of this article appeared in the print edition of The Straits Times on May 13, 2017, with the headline 'SIA Engineering chalks up 11% rise in fourth-quarter profit'. Print Edition | Subscribe