SIA Engineering posts 6.5% rise in Q3 earnings to $52.6 million

SIA Engineering posted a profit of $52.6 million for the three months ending December.
SIA Engineering posted a profit of $52.6 million for the three months ending December. PHOTO: ST FILE

SINGAPORE - SIA Engineering (SIAEC) has posted a $52.6 million profit for the three months to the end of December, 6.5 per cent higher than during the same third quarter a year ago.

The earnings included a $2.3 million gain on the partial disposal of an associated company, while the same quarter last year was impacted by provisions for closure costs and impairment of two associated companies, the firm said on Friday.

Operating profit of $25.2 million was 13.1 per cent lower than a year go.

Revenues fell by 1.1 per cent to $272.3 million, mainly from lower fleet management and airframe and component overhaul revenue.

Expenditure at $247.1 million increased at a lower rate of 0.4 per cent.

For the quarter, share of profits of joint venture companies was $14.3 million, $3.2 million lower than the same quarter last year.

However, contributions from associated companies increased by $1.6 million or 10.2 per cent to $17.3 million.

Basic earnings per share was 4.69 cents for the third quarter.

Profits for the nine months from April to December came to $286.5 million, 112 per cent higher year-on-year, mainly due to divestment gains.

Revenue dipped by 1.2 per cent to $808.7 million while expenditure rose 2.6 per cent to $760.6 million.

The operating environment of the aerospace industry remains challenging in the face of persisting global economic uncertainties, SIAEC said.

In line with its commitment to pursue strategic partnerships, the firm signed an agreement with Moog Inc. to establish a Singapore-based joint venture to overhaul Moog's products, which include components on flight control systems for new-generation aircraft, such as the Boeing 787 and the Airbus A350.

With the incorporation of Heavy Maintenance Singapore Services in October, the joint venture with Airbus will have access to a larger market.

"While these and other recently formed joint ventures position the company well for the future, they are not expected to be accretive in the near term" SIAEC said.

"As part of ongoing efforts to remain competitive, we will continue to enhance operating off-licences and manage costs, including investing in new technologies and advancing innovation" the firm added.