SIA Engineering Co Q2 profit drops 20.2% to S$35.5 million

A Singapore Airlines Boeing 777-300 is seen parked in the SIA Engineering Company hangar at Changi on Sept 25, 2013.
A Singapore Airlines Boeing 777-300 is seen parked in the SIA Engineering Company hangar at Changi on Sept 25, 2013. PHOTO: ST FILE

SINGAPORE - Profits at SIA Engineering (SIAEC) fell 20.2 per cent to S$35.5 million for the quarter ended Sept 30.

Earnings for the same three months last year included gains from associated firms.

Revenue of $264.8 million decreased by $1.2 million or 0.5 per cent while expenditure at $240.3 million

increased by $1.3 million or 0.5 per cent.

This was mainly due to increases in material and staff costs, which were offset in part by lower subcontract costs.

As a result, operating profit of $24.5 million was lower by $2.5 million or 9.3 per cent for the second quarter, SIAE C said on Tuesday.

For the six months to Sept 30, profits soared more than 172 per cent to $233.9 million, on the back of gains from the divestment of associates.

At the operating level, profits fell 52.2 per cent to $22.9 million.

Revenue for the first half of the current financial year was $536.4 million, down 1.3 per cent from the previous year.

Expenditure on the other hand rose by 3.7 per cent to $513.5 million.

The firm has declared an interim dividend of 4.0 cents per share.

Basic earnings per share was 20.83 cents for the half year ended 30 September 2016.