An increase in the share of profits from associated and joint venture firms lifted third-quarter earnings at SIA Engineering Company.
Net profit rose 6.7 per cent to $49.4 million for the three months to Dec 31 last year, compared with the $46.3 million in the same period a year ago.
Revenue at the aircraft maintenance and repair firm rose 3.7 per cent to $275.2 million, helped by higher bottom lines in the firm's fleet management and line maintenance segments. No dividend was declared for the period.
Net profit for the nine months, however, dropped 4.7 per cent to $135.2 million, while revenue fell 3.1 per cent to $818.5 million, largely because of lower airframe and component overhaul revenue.
Expenditure in the quarter grew by 2.2 per cent to $246.2 million, with increases in material and staff costs mitigated by decreases in other expenses. As a result, the operating profit of $29 million was 19.3 per cent higher than previously.
The share of profits from associated and joint venture companies surged 31.2 per cent to $33.2 million, thanks to one-time restructuring gains, including profit from the sale of facilities.
AT A GLANCE
REVENUE: $275.2 million (+3.7%)
NET PROFIT: $49.4 million (+6.7%)
Earnings per share for the quarter came in at 4.4 cents, up from 4.13 cents previously, while net asset per value stood at 131.3 cents as of Dec 31, higher than the 118.1 cents as of March 31.
But earnings per share for the nine months slid from 12.67 cents to 12.04 cents.
SIA Engineering Company, the engineering arm of Singapore Airlines, said in a statement yesterday that it expects the operating conditions for the maintenance, repair and operations industry to "remain challenging", although it will continue to "control costs and strengthen efficiencies".
"Reduced shop visits and lower work content will impact the performance of the engine shops, resulting in declining contributions from the associated and joint venture companies."
Still, ongoing initiatives to streamline and rationalise its core businesses will "enhance the group's overall competitiveness and service offerings", said the firm.
"Supported by a strong balance sheet, the group will continue to pursue strategic partnerships with leading industry players to capitalise on emerging opportunities in the region."
SIA Engineering shares closed five cents or 1.4 per cent lower at $3.41 yesterday, before the results were released.